Securities Fraud Class Action Lawsuit Filed Against Zeta Global Holdings Corp.

A securities fraud class action lawsuit has been filed against Zeta Global Holdings Corp. (NYSE: ZETA), potentially affecting investors who purchased or acquired Zeta securities between February 27, 2024, and November 13, 2024. The lawsuit, filed by the law firm Kessler Topaz Meltzer & Check, LLP, alleges that Zeta and its executives made false and misleading statements about the company's business practices and financial performance.

The complaint accuses Zeta of artificially inflating its financial results through the use of two-way contracts and round trip transactions. Additionally, the lawsuit claims that Zeta utilized predatory consent farms to collect user data, a practice that allegedly drove almost all of the company's growth. These actions, if proven true, could have significant implications for Zeta's reported financial health and future prospects.

This legal action highlights the ongoing scrutiny of data collection practices in the tech industry and the potential risks for investors in companies that rely heavily on user data for growth. The allegations against Zeta raise questions about the sustainability of its business model and the accuracy of its financial reporting.

Investors who purchased Zeta securities during the specified period have until January 21, 2025, to seek appointment as a lead plaintiff in the case. The lead plaintiff will act as a representative for all class members in directing the litigation. This role is typically filled by the investor or small group of investors with the largest financial interest in the case.

The lawsuit serves as a reminder of the importance of transparency in corporate financial reporting and the potential consequences of alleged misconduct. If the allegations are substantiated, it could lead to significant financial and reputational damage for Zeta, as well as potential regulatory scrutiny of similar practices in the industry.

As the case progresses, it will be closely watched by investors, industry analysts, and regulators for its potential impact on Zeta and the broader implications for data-driven businesses and their reporting practices. The outcome of this lawsuit could influence future regulatory approaches to data collection and financial reporting in the tech sector.