Important Notice for Shareholders of Cardlytics, Inc.
New York, NY, March 13, 2025 – The Gross Law Firm, a leading securities fraud class action law firm, notifies shareholders of Cardlytics, Inc. (NASDAQ: CDLX) that the firm has commenced an investigation into potential securities fraud. The investigation concerns whether Cardlytics and certain of its officers and/or directors have violated federal securities laws.
Class Period and Eligibility
The investigation covers share purchases between January 1, 2023, and December 31, 2024 (the “Class Period”). Eligible shareholders are those who acquired Cardlytics shares during the Class Period and may have suffered losses as a result of the alleged securities fraud.
Details of the Investigation
The Gross Law Firm’s investigation focuses on whether Cardlytics and its management misrepresented the company’s financial condition and business prospects. Specifically, the firm is investigating allegations that Cardlytics failed to disclose material information regarding:
- Revenue recognition practices
- Customer acquisition costs
- Business partnerships and agreements
These alleged misrepresentations may have artificially inflated the company’s stock price during the Class Period.
Shareholder Rights and Potential Recovery
If you are a shareholder who purchased Cardlytics shares during the Class Period, you may be entitled to seek appointment as lead plaintiff in the securities class action. The lead plaintiff is usually the party that initiates the lawsuit, and it plays a significant role in shaping the litigation and negotiating a potential settlement. To be eligible for appointment as lead plaintiff, you must meet certain legal requirements and must demonstrate a significant investment in the security or an ownership of more than 5% of the class.
Impact on Individual Investors
If the allegations against Cardlytics are proven, individual investors may be able to recover their losses through a securities class action. The recovery process involves several steps, including court approval of the class action, determination of the damages, and distribution of the funds to eligible shareholders. The length and complexity of the process can vary depending on the specific circumstances of each case.
Global Implications
The Cardlytics investigation underscores the importance of transparency and accuracy in corporate reporting. Misrepresentations and omissions in financial statements can have far-reaching consequences, potentially affecting not only individual investors but also the broader financial markets and economy. As investors become increasingly reliant on digital platforms for investment decisions, it is crucial that companies provide clear, accurate, and timely information to maintain investor trust and confidence.
Conclusion
The Gross Law Firm’s investigation into Cardlytics, Inc. highlights the importance of accurate financial reporting and the potential consequences of misrepresentations. Shareholders who purchased Cardlytics shares during the Class Period are encouraged to contact the firm to discuss their potential eligibility for the securities class action. The outcome of this investigation may provide valuable insights into the responsibilities of publicly traded companies and their obligations to their shareholders.
As investors continue to navigate the complex financial landscape, it is essential to stay informed about potential risks and to work with experienced legal counsel to protect your interests. The Gross Law Firm remains committed to advocating for the rights of investors and ensuring that companies are held accountable for their actions.
