Class Action Lawsuit Filed Against The Trade Desk: A Detailed Analysis
New York, March 11, 2025 – Pomerantz LLP, a leading securities law firm, has announced the filing of a class action lawsuit against The Trade Desk, Inc. (“Trade Desk” or the “Company”) (NASDAQ: TTD).
The complaint, filed in the United States District Court for the Central District of California, alleges that The Trade Desk and certain of its top executives violated the Securities Exchange Act of 1934 by making materially false and misleading statements regarding the Company’s business, operations, and financial condition.
Background
The Trade Desk is a leading technology company that operates a self-service, data-driven platform for buying and selling digital advertising. The Company’s Advertising Platform enables advertisers to manage digital advertising campaigns across various channels, including display, social, and video advertising.
The Allegations
The class action lawsuit alleges that The Trade Desk and its executives made false and misleading statements regarding the Company’s financial performance and growth prospects. Specifically, the complaint alleges that the defendants failed to disclose that:
- The Company was experiencing declining revenue growth and increasing competition in the digital advertising market;
- The Company’s gross margins were declining due to increased costs associated with its data and technology infrastructure;
- The Company was experiencing higher-than-anticipated sales and marketing expenses;
- The Company’s financial statements were not accurately reflecting the true financial condition of the business;
As a result of these alleged false statements, The Trade Desk’s stock traded at artificially inflated prices between February 18, 2021, and October 26, 2022.
Impact on Individual Investors
If you purchased or otherwise acquired Trade Desk securities between February 18, 2021, and October 26, 2022, you may be entitled to recover your losses. The class action seeks to represent a large group of investors who have purchased or otherwise acquired Trade Desk securities during the Class Period. If you wish to learn more about this action, please contact Pomerantz LLP.
Impact on the World
The filing of this class action lawsuit against The Trade Desk is significant for several reasons. First, it highlights the growing importance of transparency and accuracy in financial reporting in the tech industry. Second, it underscores the need for investors to carefully evaluate the financial statements and disclosures of companies they invest in. Third, it demonstrates the role that securities class action lawsuits can play in holding companies accountable for misrepresentations and misstatements.
Conclusion
The filing of this class action lawsuit against The Trade Desk is a reminder that investors must remain vigilant in evaluating the financial statements and disclosures of the companies they invest in. The allegations in the complaint, if proven true, could have significant implications for the Company and its investors. Pomerantz LLP will continue to monitor this litigation closely and provide updates as new information becomes available.
Investors who purchased or otherwise acquired Trade Desk securities between February 18, 2021, and October 26, 2022, may be entitled to recover their losses. If you wish to learn more about this action, please contact Pomerantz LLP.
