Investor Alert: Robbins LLP Informs Investors of the Digimarc Corporation Class Action Lawsuit

Core Viewpoint - A class action lawsuit has been filed against Digimarc Corporation for allegedly misleading investors about its business prospects, particularly regarding a significant contract renewal and its impact on revenue [1][2]. Group 1: Allegations and Financial Impact - The complaint alleges that Digimarc failed to disclose that a major commercial partner would not renew a large contract on the same terms, leading to a renegotiation of the contract [2]. - As a result of the contract issues, Digimarc's subscription revenue decreased by 10% to $5.0 million in Q4 2024, down from$5.6 million the previous year [3]. - The annual recurring revenue (ARR) also fell to $20.0 million from$22.23 million, primarily due to a $5.8 million decrease in ARR linked to the expiration of a commercial contract in June 2024 [3]. Group 2: Stock Market Reaction - Following the release of the financial results on February 26, 2025, Digimarc's stock price plummeted by$11.65, or 43.1%, closing at $15.39 per share on February 27, 2025 [3]. Group 3: Legal Proceedings - Shareholders interested in participating in the class action must file their papers with the court by May 9, 2025, to serve as lead plaintiff [4]. - A lead plaintiff represents the interests of other class members in the litigation process [4].