Prnewswire·2026-03-18 15:02Core Viewpoint - ODDITY Tech. Ltd. has experienced a significant decline in share price, dropping 49% due to a projected 30% year-over-year revenue decline for Q1 2026, leading to a securities class action lawsuit against the company [1][2]. Financial Performance - The company's market capitalization was reduced by over $600 million following the announcement of the expected revenue decline [2]. - ODDITY reported that Q1 2026 revenue is anticipated to decline by 30% compared to the previous year [6]. Legal Issues - A securities class action lawsuit has been filed against ODDITY, representing investors who purchased shares between February 26, 2025, and February 24, 2026 [1][3]. - The lawsuit alleges that ODDITY made false and misleading statements regarding its AI-driven online platform and failed to disclose critical information about an algorithm change by its largest advertising partner [3][4]. Operational Challenges - The algorithm change resulted in ODDITY's advertisements being diverted to lower quality auctions, significantly increasing customer acquisition costs and negatively impacting the company's financial outlook [4][5]. - Management acknowledged a "dislocation" in their account with the advertising partner, which they first noticed in the second half of 2025, but did not specify when the issue began [5][6]. Investigative Actions - Hagens Berman, the law firm handling the class action, is investigating when ODDITY first became aware of the dislocation issue and whether the company misled investors about its growth potential [7].