Investors of Cardlytics Alerted to Investigation by Faruqi & Faruqi, LLP
Faruqi & Faruqi, LLP, a respected law firm specializing in securities litigation, is currently investigating potential claims on behalf of investors in Cardlytics, Inc. (NASDAQ: CDLX). The firm is urging investors who have experienced losses exceeding $50,000 in Cardlytics between March 14, 2024, and August 7, 2024, to reach out to Securities Litigation Partner James (Josh) Wilson directly to explore their legal options.
The deadline for investors to seek the role of lead plaintiff in a federal securities class action against Cardlytics is March 25, 2025. Faruqi & Faruqi, LLP, a prominent national securities law firm, has a track record of recovering millions of dollars for investors since its establishment in 1995.
The complaint alleges that Cardlytics and its executives violated federal securities laws by making false statements, failing to disclose crucial information, and misleading investors. It was alleged that the company experienced challenges in increasing billings commensurate with rising consumer engagement. Consequently, there was a significant risk of slowing or declining revenue growth.
On May 8, 2024, Cardlytics reported that its first-quarter 2024 revenue had only increased by 8% year-over-year, despite a 12% increase in billings, attributed to a 20.2% rise in consumer incentives. Consequently, the company’s stock price plummeted by 36.5%, closing at $9.27 per share on May 9, 2024.
Similarly, on August 7, 2024, after the market closed, Cardlytics released its second-quarter 2024 financial results, demonstrating a 9% year-over-year decrease in revenue to $69.6 million, along with a 3% decline in adjusted contribution to $36.4 million. Additionally, the press release disclosed the stepping down of Karim Temsamani as Chief Executive Officer and from the Board of Directors. This news led to a 57.1% drop in Cardlytics’ stock price, closing at $2.96 per share on August 8, 2024.
In the class action, the court-appointed lead plaintiff represents the investor with the most significant financial interest in seeking relief for the class and oversees the litigation on behalf of class members. Any member of the class has the option to move the Court to serve as a lead plaintiff with their chosen counsel or remain as an absent class member without affecting their ability to share in any potential recovery.
Faruqi & Faruqi, LLP encourages individuals with pertinent information about Cardlytics’ conduct, including whistleblowers, former employees, shareholders, or others, to come forward. To learn more about the class action against Cardlytics, individuals can visit the Faruqi & Faruqi website or contact Partner Josh Wilson directly.
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