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][7]. 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 [4]. Revenue and Advertising Dependency - The company's revenue and customer acquisition costs are significantly influenced by its advertising partners' algorithms, which utilize user behavior and demographic data to optimize online advertising exposure [5]. - Higher-quality ad auctions correlate with lower customer acquisition costs, while lower-quality auctions lead to increased costs [6]. Allegations in the Lawsuit - The lawsuit claims that Oddity's executives made materially false and misleading statements, failing to disclose that changes in algorithms from its largest advertising partner diverted ads to lower-quality auctions, resulting in increased customer acquisition costs and negatively impacting the company's financial outlook [7]. Impact of Recent Developments - On February 25, 2026, Oddity disclosed a significant increase in user acquisition costs due to the algorithm changes, predicting a 30% decline in first-quarter 2026 revenue year-over-year, with hopes for improvement in the second half of 2026 [8]. - Following this announcement, Oddity's Class A ordinary share price dropped by $14.28, or 49.21%, closing at $14.74 per share [9].