Direct Digital Holdings Faces Multiple Shareholder Lawsuits Amid Allegations of Securities Fraud

SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Direct Digital Holdings, Inc. of Class Action Lawsuit and Upcoming Deadlines - DRCT - Direct Digital Holdings (NASDAQ:DRCT)

NEW YORK, July 12, 2024 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Direct Digital Holdings, Inc. ("Direct Digital" or the "Company") DRCT and certain officers. The class action, filed in the United States District Court for the Southern District of Texas, Houston Division, and docketed under 24-cv-02567, is on behalf of all those who purchased, or otherwise acquired, Direct Digital common stock during the period from April 17, 2023 through March 25, 2024, inclusive (the "Class Period"), who were damaged thereby (the "Class"). This action is brought on behalf of the Class for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. §§ 78j(b) and 78t(a), and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission, 17 C.F.R. § 240.10 b-5. If you are a shareholder who purchased, or otherwise acquired, Direct Digital common stock during the Class Period, you have until July 22, 2024 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. [Click here for information about joining the class action] Direct Digital is an end-to-end, full-service programmatic advertising platform that provides advertising technology, data-driven campaign optimization, and other solutions to markets on both the buy- and sell-side of the digital advertising ecosystem. The Complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material facts, including that: (i) the Company's transition towards a "cookie-less" advertising environment was accelerated and would impact revenue in 2024; (ii) the Company's alternatives to third-party cookies, including planned investments in artificial intelligence and machine learning to build on first-party data sources, would not be viable alternatives to third-party cookies and similar tracking technologies; (iii) the Company did not have adequate solutions to address the impending phase out of third-party cookies by Google; and (iv) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about the effectiveness of Direct Digital's platform and related financial results, growth, and prospects. On December 11, 2023, White Diamond Research published a report (the "White Diamond Report") addressing Direct Digital. The White Diamond Report noted, inter alia, that Direct Digital "doesn't mention any patents and reports zero R&D expense for its technology", which "suggests that its tech isn't proprietary and isn't improving to keep up with the strong competition in the space"; as well as asserted, inter alia, that the Company "is practically broke, with a reported $5.5M in cash, accounts payable that almost doubled quarter over quarter to $45M, and a sizeable debt of $24M with a 15% interest rate." On this news, the price of Direct Digital common stock declined by $1.39 per share, or 11.31%, from $12.29 per share on December 8, 2023 to close at $10.90 per share on December 11, 2023. On March 26, 2024, Direct Digital announced that it missed revenue estimates for the fourth quarter of 2023, citing lower-than-anticipated demand, a delay in the release of Tier 1 publishers from beta testing, and proactive efforts by Direct Digital to accelerate its transition towards a "cookie-less" advertising platform. Defendant Mark Walker, Direct Digital's Chief Executive Officer, Co-Founder, and Chairman, also revealed that in the fourth quarter of 2023, it "became clearer" that cookie depreciation would begin in the first quarter of 2024 and that, "[a]s such, our team proactively began our transition off of cookies for media transactions." On this news, the price of Direct Digital common stock declined by $10.47 per share, or approximately 39%, from $26.51 per share on March 26, 2024 to close at $16.04 per share on March 27, 2024. Then, on April 2, 2024, Direct Digital disclosed that a material weakness had been "identified in [its] review of internal control over financial reporting as of December 31, 2023." On this news, Direct Digital's stock price fell $1.49 per share, or 10.4%, from $14.31 per share on April 1, 2024 to close at $12.82 per share on April 2, 2024, further injuring investors. Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com. Attorney advertising. Prior results do not guarantee similar outcomes. CONTACT: Danielle Peyton Pomerantz LLP [email protected] 646-581-9980 ext. 7980 Market News and Data brought to you by Benzinga APIs

DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Direct Digital - Direct Digital Holdings (NASDAQ:DRCT)

Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Direct Digital To Contact Him Directly To Discuss Their Options If you purchased or acquired securities in Direct Digital between April 17, 2023 and March 25, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/DRCT. NEW YORK, July 12, 2024 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Direct Digital Holdings, Inc. ("Direct Digital" or the "Company") DRCT and reminds investors of the July 22, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com. As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company's transition toward a "cookie-less" advertising environment was accelerated and would impact revenue in 2024; (2) the Company's alternatives to third-party cookies, including planned investments in AI and machine learning to build on first-party data sources, would not be viable alternatives to third-party cookies and similar tracking technologies; (3) the Company did not have adequate solutions to address the impending phase out of third-party cookies by Google; and (4) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about the effectiveness of Direct Digital's platform and related financial results, growth, and prospects. When the truth emerged, Direct Digital shares fell significantly, damaging investors according to the allegations of the suit. On March 26, 2024, Direct Digital released its fourth quarter and full year 2023 financial results, missing revenue growth estimates due to "efforts . . . to accelerate the transition towards a cookie-less advertising platform." On this news, Direct Digital's stock price fell $10.47, or 39.5%, to close at $16.04 per share on March 27, 2024, thereby injuring investors. The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. Faruqi & Faruqi, LLP also encourages anyone with information regarding Direct Digital's conduct to contact the firm, including whistleblowers, former employees, shareholders and others. To learn more about the Direct Digital class action, go to www.faruqilaw.com/DRCT or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Follow us for updates on LinkedIn, on X, or on Facebook. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner. A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5e848124-9c14-4bab-ba13-256ecec0c433 Market News and Data brought to you by Benzinga APIs

DRCT Investors Have Opportunity to Lead Direct Digital Holdings, Inc. Securities Fraud Lawsuit

NEW YORK, July 12, 2024 /PRNewswire/ -- Rosen Law Firm, a global investor rights law firm, reminds investors a shareholder filed a class action lawsuit on behalf of all purchasers of common stock of Direct Digital Holdings, Inc. (NASDAQ: DRCT) between April 17, 2023 and March 25, 2024. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by July 22, 2024. To join the Direct Digital class action, go to https://rosenlegal.com/submit-form/?case_id=25535 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected]. The Rosen Law Firm is investigating the Allegations that Direct Digital Holdings, Inc. (NASDAQ: DRCT) Misled Investors Regarding its Business Operations. According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Direct Digital's transition toward a "cookie-less" advertising environment was accelerated and would impact revenue in 2024; (2) Direct Digital's alternatives to third-party cookies, including planned investments in AI and machine learning to build on first-party data sources, would not be viable alternatives to third-party cookies and similar tracking technologies; (3) Direct Digital did not have adequate solutions to address the impending phase out of third-party cookies by Google; and (4) based on the foregoing, defendants lacked a reasonable basis for their positive statements about the effectiveness of Direct Digital's platform and related financial results, growth, and prospects. When the true details entered the market, the lawsuit claims that investors suffered damages. What Now: You may be eligible to participate in the class action against Direct Digital Holdings, Inc. The deadline to file a motion to be appointed as lead plaintiff is July 22, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, go to https://rosenlegal.com/case/direct-digital-holdings-inc/ All representation is on a contingency fee basis. Shareholders pay no fees or expenses. Attorney Advertising. Prior results do not guarantee a similar outcome.