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Faruqi & Faruqi Reminds Cardlytics Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of March 25, 2025 - CDLX
CDLXCardlytics(CDLX) Prnewswire·2025-02-20 15:20

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Cardlytics, Inc. due to allegations of violations of federal securities laws, encouraging affected investors to come forward [2][4]. Group 1: Legal Investigation and Claims - The law firm is urging investors who suffered losses exceeding 50,000inCardlyticsbetweenMarch14,2024,andAugust7,2024,todiscusstheirlegaloptions[1].−AfederalsecuritiesclassactionhasbeenfiledagainstCardlytics,withadeadlineofMarch25,2025,forinvestorstoseektheroleofleadplaintiff[2][7].−Thefirmhasahistoryofrecoveringhundredsofmillionsofdollarsforinvestorssinceitsestablishmentin1995[3].Group2:AllegationsAgainstCardlytics−ThecomplaintallegesthatCardlyticsanditsexecutivesmadefalseormisleadingstatementsandfailedtodisclosecriticalinformationregardingconsumerengagementandrevenuegrowth[4].−Specificallegationsincludetheinabilitytoincreasebillingsinlinewithconsumerengagement,leadingtoasignificantriskofrevenuegrowthslowingordeclining[4].Group3:FinancialPerformanceandStockImpact−OnMay8,2024,Cardlyticsreportedarevenueincreaseofonly850,000 in Cardlytics between March 14, 2024, and August 7, 2024, to discuss their legal options [1]. - A federal securities class action has been filed against Cardlytics, with a deadline of March 25, 2025, for investors to seek the role of lead plaintiff [2][7]. - The firm has a history of recovering hundreds of millions of dollars for investors since its establishment in 1995 [3]. Group 2: Allegations Against Cardlytics - The complaint alleges that Cardlytics and its executives made false or misleading statements and failed to disclose critical information regarding consumer engagement and revenue growth [4]. - Specific allegations include the inability to increase billings in line with consumer engagement, leading to a significant risk of revenue growth slowing or declining [4]. Group 3: Financial Performance and Stock Impact - On May 8, 2024, Cardlytics reported a revenue increase of only 8% year-over-year, despite a 12% increase in billings, attributed to a 20.2% rise in consumer incentives, resulting in a stock price drop of 5.33 (36.5%) [5]. - Following the release of second-quarter 2024 results on August 7, 2024, which showed a 9% year-over-year revenue decrease to 69.6million,thestockpricefellby69.6 million, the stock price fell by 3.94 (57.1%) [6].