Zeta Global Holdings Faces Legal Action: Important Deadline for Investors

NEW YORK, Dec. 22, 2024 (GLOBE NEWSWIRE) -- Bleichmar Fonti & Auld LLP, a leading securities law firm, has announced that a lawsuit has been initiated against Zeta Global Holdings Corp. (NYSE: ZETA) along with several senior executives of the company. This legal action is based on potential violations of federal securities laws.

If you are an investor in Zeta, it is advisable to gather more information regarding this lawsuit by visiting BFA Law.

Investors have until January 21, 2025, to request the Court to appoint them as lead plaintiffs in the case. The complaint is filed under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of those who have invested in Zeta securities. The case is currently proceeding in the U.S. District Court for the Southern District of New York and is labeled as Davoodi v. Zeta Global Holdings Corp., et al., No. 24-cv-08961.

Overview of the Lawsuit

Zeta Global is primarily a cloud-based technology firm that offers a marketing platform aimed at helping marketers acquire new customers. The lawsuit claims that Zeta represented its marketing platform as being supported by the largest opted-in dataset in the industry.

On November 13, 2024, a well-known investment research firm, Culper Research, released a report titled "Zeta Global Holdings Corp (ZETA): Shams, Scams, and Spam." This report was based on extensive investigations, including proprietary interviews with industry experts and former employees of Zeta. Their findings indicated that Zeta's dataset was built from "consent farms," which are essentially deceptive websites designed to collect consumer information under false pretenses.

According to Culper Research, these consent farms have been crucial for Zeta’s growth over the past two years, contributing to 56% of its Adjusted EBITDA. This situation has the potential to spark significant regulatory repercussions.

The revelation from this report prompted a notable drop in Zeta’s stock price. Following the publication of the report on November 13, 2024, Zeta’s stock surged down by 37%, decreasing from a closing price of $28.22 per share on November 12, 2024, to $17.76 per share on the very next day.

Implications for Investors

If you have invested in Zeta Global, you may have legal avenues available to you, and it is recommended that you submit your information to the law firm mentioned earlier.

It is important to note that the law firm operates on a contingency fee basis, meaning there is no upfront cost to you as a shareholder. Investors will not be responsible for court fees or litigation costs unless approved by the court. The firm will seek court permission for any related fees and expenses.

For further clarity and guidance, investors are encouraged to submit their information by visiting BFA Law.

About Bleichmar Fonti & Auld LLP

Bleichmar Fonti & Auld LLP is a prominent international law firm that advocates for plaintiffs in securities class actions and shareholder litigation. In 2023, the firm was recognized among the Top 5 plaintiff law firms by ISS SCAS, and its attorneys have received accolades such as Titans of the Plaintiffs' Bar by Law360 and SuperLawyers recognition by Thomson Reuters. Recent victories for the firm include recovering over $900 million from the Board of Directors of Tesla, Inc. (pending court approval), alongside $420 million from Teva Pharmaceutical Industries Ltd.

For additional details about BFA and its team of attorneys, visit BFA Law.

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Zeta, Lawsuit, Investors