Direct Digital Holdings Inc. was sued by a shareholder who alleges investors were misled about the advertising platform’s reliance on user-tracking technologies.
Direct Digital executives downplayed the platform’s dependence on cookies and other tracking mechanisms but didn’t have adequate solutions to deal with Google’s plan to phase cookies out of its Chrome browser, the suit said.
The would-be class lawsuit, filed Tuesday in the US District Court for the Southern District of Texas, follows a short-seller report in December that said Direct Digital was “practically broke” and the company’s March announcement that it missed a revenue estimate.
“As a ...
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