Class Action Lawsuit Filed Against Cardlytics, Inc. for Securities Violations
On February 18, 2025, The Schall Law Firm announced that it had filed a class action lawsuit against Cardlytics, Inc. (NASDAQ: CDLX) in the United States District Court for the Northern District of Georgia. The lawsuit alleges that the Company violated the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making false and misleading statements to investors during the Class Period, which spanned from March 14, 2024, to August 7, 2024.
Allegations of Securities Violations
The complaint asserts that Cardlytics made materially false and misleading statements regarding its financial condition and business prospects. Specifically, the Company reported higher revenue growth rates and customer acquisition costs than were actually the case. These misrepresentations were made to inflate Cardlytics’ stock price, artificially benefiting insiders and executives.
Who is Affected by the Lawsuit?
The lawsuit includes all persons or entities who purchased or otherwise acquired securities of Cardlytics during the Class Period. These investors may be eligible to recover damages through the class action if the Court certifies the class and the defendants are found liable.
Impact on Individual Investors
If you purchased Cardlytics securities during the Class Period, you may have lost money as a result of the Company’s securities violations. The class action aims to recover damages for these losses. If the class is certified and the defendants are found liable, you may be entitled to a share of the damages.
Impact on the World
The class action lawsuit against Cardlytics is significant because it highlights the importance of truthful and accurate financial reporting. Companies that manipulate their financial statements or provide misleading information to investors can cause substantial harm to the investing public. Such actions can lead to a loss of confidence in the stock market and undermine the trust between investors and corporations. The outcome of this lawsuit could serve as a deterrent for other companies considering similar actions and help maintain the integrity of the securities market.
Conclusion
The class action lawsuit against Cardlytics, Inc. serves as a reminder of the importance of truthful and accurate financial reporting. If you purchased Cardlytics securities during the Class Period, you may be eligible to recover damages. The lawsuit could also have a broader impact on the world by deterring companies from manipulating their financial statements and maintaining investor trust. If you have questions about this lawsuit or your potential eligibility to participate in the class action, contact The Schall Law Firm.
- The Schall Law Firm filed a class action lawsuit against Cardlytics, Inc. for securities violations.
- The lawsuit alleges that Cardlytics made false and misleading statements during the Class Period, from March 14, 2024, to August 7, 2024.
- The Company reported higher revenue growth rates and customer acquisition costs than were actually the case to inflate its stock price.
- Individual investors who purchased Cardlytics securities during the Class Period may be eligible to recover damages.
- The lawsuit could have a broader impact on the world by deterring companies from manipulating their financial statements and maintaining investor trust.
