NEW YORK, Aug. 23, 2024 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who purchased securities of Oddity Tech Ltd. (“Oddity” or the “Company”) (NASDAQ: ODD) during the period beginning July 19, 2023 and ending May 20, 2024, inclusive (“the Class Period”). Investors have until September 17, 2024 to request that the Court appoint them as lead plaintiff in the lawsuit.
(Click here to learn more about the class action lawsuit)
On May 21, 2024, short-seller Ningi Research published a report on Oddity, claiming that the company had “completely misled investors on all key aspects of its business,” particularly regarding its AI technology. The company had attributed repeat sales and customers to its AI technology’s ability to generate hyper-personalized product suggestions for customers, but the Ningi report found that Oddity’s “repeat purchase rates” were actually due to “customers unknowingly entering into non-cancellable plans” that allow the company to “detect repeat purchases in subsequent quarters even though the customers don’t want the product.” According to the Ningi report, Oddity’s “product matching technology” was more like a “regular questionnaire.”
Ningi also claimed it found “hundreds of undisclosed lawsuits against ODDITY and its subsidiaries in the United States and Israel, often alleging unpaid bills and violations of consumer protection laws.” The Ningi report alleged the defendants were involved in a pump-and-dump scheme and documented instances of insider selling by the executives. On this news, the price of Oddity Class A shares dropped by $3.02 per share, from $40.99 on May 20, 2024 to $37.97 on May 21, 2024.
The lawsuit alleges that Oddity made materially false and misleading statements about the Company’s business, operations and compliance policies. Specifically, the Company made false and/or misleading statements and/or failed to disclose that: (i) Oddity exaggerated its AI technology and capabilities and the extent to which such technology increased the Company’s revenue; (ii) Oddity’s repurchase rates and revenue were due in part to unsustainable and deceptive sales and advertising practices; and (iii) Oddity downplayed the true scope and severity of the ongoing civil litigation against the Company and/or its affiliates.
If you purchased or otherwise acquired Oddity securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at [email protected] or by completing this CONTACT FORM to discuss your rights or interests with respect to these matters free of charge.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm specializing in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in billions of dollars in awards. For more information about the firm, visit the Kirby McInerney LLP website.
This press release may be considered Attorney Advertising in some jurisdictions under applicable laws and professional rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
[email protected]
