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Class Action Suit Filed by Glancy Prongay & Murray LLP Against Cardlytics, Inc. for Securities Fraud on Behalf of Investors

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Class Action Lawsuit Filed Against Cardlytics Following Significant Stock Drops

Investors Have 60 Days to Join the Lawsuit

Glancy Prongay & Murray LLP (“GPM”) has initiated a class action lawsuit in the United States District Court for the Northern District of Georgia. The case, titled Froess v. Cardlytics, Inc., et al., Case No. 1:25-cv-279, targets individuals and companies that purchased or acquired securities of Cardlytics, Inc. (“Cardlytics” or the “Company”) CDLX from March 14, 2024, to August 7, 2024, collectively known as the “Class Period”. The lawsuit alleges violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”).

Investors who wish to participate have 60 days from today to request the Court appoint them as lead plaintiff.

Were You Affected By Cardlytics’ Stock Declines? CLICK HERE To Explore Your Options for Recovering Your Losses Under Federal Securities Laws.

What Led to This Lawsuit?

On May 8, 2024, after the market closed, Cardlytics disclosed that its revenue for the first quarter of 2024 rose by only 8% compared to the previous year, despite a 12% increase in billings. This increase was largely eroded by a significant 20.2% rise in consumer incentives.

Following this news, the Company’s stock plummeted $5.33, or 36.5%, resulting in a closing price of $9.27 per share on May 9, 2024, amid heightened trading activity.

Cardlytics’ challenging financial outlook continued on August 7, 2024, when it reported second-quarter 2024 results, showing a 9% year-over-year decrease in revenue to $69.6 million. In addition, the adjusted contribution fell by 3% to $36.4 million. The announcement included the resignation of CEO Karim Temsamani from both his position and the Board of Directors.

As a result of this news, Cardlytics’ stock dropped another $3.94, equivalent to a 57.1% decline, closing at $2.96 per share on August 8, 2024, also on unusually heavy trading volume.

What Are the Allegations in the Lawsuit?

The class action claims that throughout the Class Period, Cardlytics made materially false and/or misleading statements and failed to disclose key adverse facts regarding its business and future prospects. Specifically, the lawsuit argues that the Company did not inform investors about several issues, including: (1) rising consumer engagement causing an increase in consumer incentives; (2) an inability to align billing increases with this heightened engagement; (3) the potential for slowed or declining revenue growth; (4) changes to advertising delivery effectiveness leading to poor budget performance; and (5) that the optimistic statements made by Defendants regarding the Company’s operations lacked a reasonable basis.

Those who acquired Cardlytics securities during the Class Period are encouraged to petition the Court to be appointed as the lead plaintiff by 60 days from this notice.

How to Get Involved or Get More Information:

For more details about the lawsuit, or if you have any questions about this announcement, please reach out to:

Charles Linehan, Esq.,
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles, California 90067
Email: shareholders@glancylaw.com
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.

If you reach out by email, please include your mailing address, phone number, and the number of shares you purchased.

No immediate action is needed to be part of the Class; you may either retain counsel or take no action and remain an absent Class member.

This press release may be considered Attorney Advertising in certain jurisdictions per applicable law and ethical guidelines.

Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Charles Linehan

Email: shareholders@glancylaw.com
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.

© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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