DoubleVerify(US:DV) GlobeNewswire News Room·2025-06-28 12:10Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against DoubleVerify Holdings, Inc. due to allegations of violations of federal securities laws, with a deadline for investors to seek lead plaintiff status in a class action lawsuit by July 21, 2025 [3][5]. Group 1: Allegations Against DoubleVerify - The complaint alleges that DoubleVerify misled investors by failing to disclose that customers were shifting ad spending from open exchanges to closed platforms, where the company's capabilities were limited [5]. - It is claimed that DoubleVerify's ability to monetize its high-margin Activation Services was constrained due to the high costs and time required for technology development for closed platforms [5]. - The complaint states that competitors were better positioned to integrate AI into their offerings on closed platforms, negatively impacting DoubleVerify's competitive edge and profitability [5]. - Allegations include that DoubleVerify systematically overbilled customers for ad impressions served to declared bots, and that risk disclosures were materially false and misleading [5]. Group 2: Impact of Allegations - The truth about DoubleVerify's financial struggles was revealed on February 27, 2025, when the company reported lower-than-expected sales and earnings, leading to a significant stock price drop of $7.83 per share, or 36%, from $21.73 to $13.90 [6]. - The decline in stock price was attributed to reduced customer spending and the suspension of services by a major client, alongside the shift of ad dollars impacting the company negatively [6]. Group 3: Legal Proceedings - The lead plaintiff in the class action will be the investor with the largest financial interest who is typical of class members, overseeing the litigation on behalf of the class [7]. - Any member of the class can move to serve as lead plaintiff or remain an absent class member without affecting their ability to share in any recovery [7].