The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that:
- the Company’s recent acquisitions, AdColony and Fyber, act as agents in certain of their respective product lines;
- as a result, revenues for those product lines must be reported net of license fees and revenue share, rather than on a gross basis;
- the Company’s internal control over financial reporting as to revenue recognition was deficient;
- as a result of the foregoing, the Company’s net revenues was overstated throughout fiscal 2022; and
- as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.