A securities class action lawsuit has been filed against Zeta Global Holdings Corp. (NYSE: ZETA), alleging that the company made materially false and misleading statements about its business practices. The lawsuit, filed on behalf of investors who purchased Zeta securities between February 27, 2024, and November 13, 2024, claims that the company artificially inflated its financial results and engaged in questionable data collection practices.
According to the complaint, Zeta allegedly used two-way contracts and round trip transactions to artificially boost its financial performance. Additionally, the company is accused of utilizing predatory consent farms to collect user data, a practice that reportedly drove almost all of Zeta's growth. These allegations, if proven true, could have significant implications for Zeta's business model and future prospects.
The lawsuit seeks to represent investors who may have suffered losses due to the alleged misconduct. The lead plaintiff deadline for the case is set for January 21, 2025. This legal action highlights the ongoing scrutiny of data practices in the tech industry and the potential risks for investors in companies that rely heavily on user data for their business models.
This case underscores the importance of transparency and ethical practices in the rapidly evolving digital marketing and data analytics sector. It also serves as a reminder to investors of the potential risks associated with companies that may engage in aggressive or questionable business practices to drive growth and financial performance.
As the lawsuit progresses, it could have broader implications for the industry, potentially leading to increased regulatory attention on data collection practices and financial reporting in the tech sector. Investors and industry observers will likely be watching closely to see how this case unfolds and what impact it may have on Zeta Global Holdings Corp. and similar companies in the data-driven marketing space.
