Class Action Filed Against Cardlytics Over Securities Fraud

Law Offices of Howard G. Smith announces a class action lawsuit on behalf of investors who purchased Cardlytics, Inc. (“Cardlytics” or the “Company”) CDLX securities during the period of March 14, 2024, to August 7, 2024 (the “Class Period”). Investors have until March 25, 2025 to file a motion to be appointed as lead plaintiff.

IF YOU INVESTED IN CARDLYTICS, INC. (CDLX) AND SUFFERED A LOSS, CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT PARTICIPATING IN THE SECURITIES FRAUD LAWSUIT.

To discuss your legal rights, reach out to the Law Offices of Howard G. Smith by email at [email protected], by phone at (215) 638-4847, or visit our website at www.howardsmithlaw.com.

Incidents Leading to the Lawsuit

On May 8, 2024, Cardlytics reported that its first-quarter revenue for 2024 rose by only 8% year-over-year, despite a 12% rise in billings. This discrepancy arose due to a significant 20.2% increase in consumer incentives.

As a result of this news, the Company’s stock plummeted by $5.33, or 36.5%, closing at $9.27 per share on May 9, 2024, with trading activity significantly heightened.

Further compounding the issues, Cardlytics disclosed on August 7, 2024, after market hours, that its second-quarter revenue had decreased by 9% year-over-year, totaling $69.6 million. Additionally, there was a 3% dip in adjusted contribution, amounting to $36.4 million. The announcement also noted the departure of Chief Executive Officer Karim Temsamani from the Board of Directors.

Consequently, the stock price fell by $3.94, or 57.1%, closing at $2.96 per share on August 8, 2024, again with unusually high trading volumes.

Lawsuit Allegations

The class action complaint alleges that during the Class Period, Defendants issued materially false or misleading statements and failed to disclose adverse facts regarding the Company’s business operations and growth prospects. Specifically, key omissions included: (1) increasing consumer engagement that led to higher consumer incentives; (2) the inability of the Company to increase billings in line with consumer engagement growth; (3) the resultant significant risk of slowing or declining revenue growth; (4) inadequate changes to Advertising Delivery Engine (ADE) impacting customer billing estimates; and (5) that the preceding points rendered Defendants’ positive statements about the Company’s business misleading.

How to Get Involved

If you purchased Cardlytics securities or have information related to this case, or if you wish to learn more about your rights in this matter, please contact the Law Offices of Howard G. Smith:

Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: (215) 638-4847
Email: [email protected],
Visit our website at: www.howardsmithlaw.com.

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View the source version on businesswire.com: https://www.businesswire.com/news/home/20250226330326/en/

Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
[email protected]
www.howardsmithlaw.com