A securities class action lawsuit has been filed against ODDITY Tech. Ltd., representing investors who purchased company securities between Feb. 26, 2025 and Feb. 24, 2026, following a significant decline in the company’s share price on Feb. 25, according to a March 30 announcement.
The lawsuit comes after ODDITY’s American Depositary Shares fell by 49%, erasing over $600 million from its market capitalization, as the company announced it expects first quarter revenue for 2026 to decrease by about 30% compared to the previous year. This development led Hagens Berman Sobol Shapiro LLP to investigate potential violations of federal securities laws.
According to the complaint, ODDITY promoted its AI-driven online platform as a means to “sustain our high-growth and attractive margin profile[.]” The suit alleges that the company made misleading statements and did not disclose an algorithm change by its largest advertising partner that diverted advertisements to lower quality auctions at higher costs, which raised customer acquisition expenses and affected business performance.
During an earnings call addressing these issues, management said they had “observed that something was different in the second half of 2025,” but did not specify when problems began with their advertising partner’s algorithm changes. Reed Kathrein of Hagens Berman said: “We’re investigating when ODDITY first knew of the dislocation issue and whether it may have intentionally misled investors about the true strength of its AI growth-driver.” The lead plaintiff deadline is May 11, and investors with substantial losses are encouraged to contact Hagens Berman.
Hagens Berman is known for handling complex litigation related to corporate accountability worldwide and has secured more than $2.9 billion in similar cases involving investor rights claims.
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