Pomerantz Law Firm Announces the Filing of a Class Action Against ODDITY Tech Ltd. and Certain Officers - ODD

Core Viewpoint - A class action lawsuit has been filed against Oddity Tech Ltd. for alleged violations of federal securities laws during the Class Period from February 26, 2025, to February 24, 2026, due to misleading statements regarding the company's business and financial prospects [1][6]. Company Overview - Oddity is a consumer technology company focused on building digital-first brands in the beauty and wellness industries, utilizing an AI-driven online platform to identify consumer needs and develop relevant products [3]. Revenue and Advertising Model - The company's revenue growth is heavily reliant on advertising partners, with customer acquisition costs being influenced by the algorithms of these partners, which analyze user behavior and demographics to optimize online advertising exposure [4]. - The quality of ad auctions directly affects customer acquisition costs, with higher-quality auctions leading to lower costs per click and higher click-through rates, while lower-quality auctions result in the opposite [5]. Allegations in the Lawsuit - The lawsuit claims that Oddity's executives made materially false and misleading statements, failing to disclose that changes in algorithms by its largest advertising partner led to higher customer acquisition costs and negatively impacted the company's financial outlook [6]. - Specific allegations include the diversion of advertisements to lower-quality auctions at abnormally high costs, which significantly increased customer acquisition costs and misrepresented the strength and sustainability of Oddity's business model [6]. Impact of Financial Disclosure - On February 25, 2026, Oddity disclosed financial results indicating a significant increase in user acquisition costs due to the aforementioned algorithm changes, predicting a 30% year-over-year decline in revenue for the first quarter of 2026 [7]. - Following this announcement, Oddity's Class A ordinary share price dropped by $14.28, or 49.21%, closing at $14.74 per share [8].