The Trade Desk Faces Class Action Lawsuit Over AI Tool Rollout Challenges

6 Sources

Multiple law firms have filed class action lawsuits against The Trade Desk, alleging misleading statements about the rollout of their AI forecasting tool Kokai.

News article

Class Action Lawsuit Filed Against The Trade Desk

The Trade Desk, Inc. (NASDAQ: TTD), a prominent player in the digital advertising technology sector, is facing multiple class action lawsuits over alleged misleading statements regarding the rollout of its artificial intelligence (AI) forecasting tool, Kokai. Several law firms, including Rosen Law Firm, Levi & Korsinsky, and The Gross Law Firm, have filed complaints on behalf of investors who purchased The Trade Desk's Class A common stock between May 9, 2024, and February 12, 2025 123.

Allegations of Misleading Statements

The lawsuits allege that The Trade Desk made false and misleading statements and/or failed to disclose critical information about the Kokai rollout. Specifically, the complaints assert that:

  1. The company was experiencing significant, self-inflicted execution challenges in transitioning clients from its older platform, Solimar, to the new AI-powered Kokai tool 4.
  2. These execution challenges substantially delayed the Kokai rollout 1.
  3. The Trade Desk's inability to effectively execute the Kokai rollout negatively impacted its business operations and revenue growth 2.
  4. Positive statements made by the company about its business, operations, and prospects were materially false, misleading, or lacked a reasonable basis 3.

Impact on Investors

The lawsuits claim that when the true details about the Kokai rollout challenges entered the market, investors suffered damages. The class action seeks to recover losses on behalf of affected Trade Desk investors 5.

Legal Proceedings and Deadlines

Investors who purchased The Trade Desk's Class A common stock during the specified period are being encouraged to join the class action. The lead plaintiff deadline for these cases is set for April 21, 2025 123. Key points for potential claimants include:

  • No out-of-pocket fees or costs are required to join the class action due to contingency fee arrangements 4.
  • Investors can choose their own counsel or remain absent class members 5.
  • The ability to share in any potential recovery is not dependent on serving as a lead plaintiff 1.

The Trade Desk and Kokai

The Trade Desk is known for its digital advertising technology platform. Kokai, the AI forecasting tool at the center of this controversy, was designed to enable users to more effectively deploy advertising spending 4. The transition from the older Solimar platform to Kokai was apparently more challenging than the company had initially communicated to investors.

Broader Implications

This case highlights the potential risks associated with the rollout of new AI technologies in the business world. It underscores the importance of transparent communication with investors about challenges in implementing cutting-edge technologies, especially when they are central to a company's growth strategy and market positioning.

Explore today's top stories

NVIDIA Unveils Major GeForce NOW Upgrade with RTX 5080 Performance and Expanded Game Library

NVIDIA announces significant upgrades to its GeForce NOW cloud gaming service, including RTX 5080-class performance, improved streaming quality, and an expanded game library, set to launch in September 2025.

CNET logoengadget logoPCWorld logo

10 Sources

Technology

21 hrs ago

NVIDIA Unveils Major GeForce NOW Upgrade with RTX 5080

Nvidia Develops New AI Chip for China Amid Geopolitical Tensions

Nvidia is reportedly developing a new AI chip, the B30A, based on its latest Blackwell architecture for the Chinese market. This chip is expected to outperform the currently allowed H20 model, raising questions about U.S. regulatory approval and the ongoing tech trade tensions between the U.S. and China.

TechCrunch logoTom's Hardware logoReuters logo

11 Sources

Technology

21 hrs ago

Nvidia Develops New AI Chip for China Amid Geopolitical

SoftBank's $2 Billion Investment in Intel: A Strategic Move in the AI Chip Race

SoftBank Group has agreed to invest $2 billion in Intel, buying common stock at $23 per share. This strategic investment comes as Intel undergoes a major restructuring under new CEO Lip-Bu Tan, aiming to regain its competitive edge in the semiconductor industry, particularly in AI chips.

TechCrunch logoTom's Hardware logoReuters logo

18 Sources

Business

14 hrs ago

SoftBank's $2 Billion Investment in Intel: A Strategic Move

Databricks Secures $100 Billion Valuation in Latest Funding Round, Highlighting AI Sector's Rapid Growth

Databricks, a data analytics firm, is set to raise its valuation to over $100 billion in a new funding round, showcasing the strong investor interest in AI startups. The company plans to use the funds for AI acquisitions and product development.

Reuters logoAnalytics India Magazine logoU.S. News & World Report logo

7 Sources

Business

5 hrs ago

Databricks Secures $100 Billion Valuation in Latest Funding

OpenAI Launches Affordable ChatGPT Go Plan in India, Eyeing Global Expansion

OpenAI introduces ChatGPT Go, a new subscription plan priced at ₹399 ($4.60) per month exclusively for Indian users, offering enhanced features and affordability to capture a larger market share.

TechCrunch logoBloomberg Business logoReuters logo

15 Sources

Technology

14 hrs ago

OpenAI Launches Affordable ChatGPT Go Plan in India, Eyeing
TheOutpost.ai

Your Daily Dose of Curated AI News

Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.

© 2025 Triveous Technologies Private Limited
Instagram logo
LinkedIn logo