| COMPANY |
Integral Ad Science Holding Corp. |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
1:25-cv-00847 |
| JUDGE |
The Hon. Lewis A. Kaplan |
| CLASS PERIOD |
March 2, 2023, and February 27, 2024 |
| SECURITY TYPE |
Common Stock |
LEAD PLAINTIFF DEADLINE IS MARCH 31, 2025.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
A class action lawsuit has been filed on behalf of those who purchased Integral Ad Science Holding Corp. (“IAS”) (NASDAQ: IAS) common stock between March 2, 2023, and February 27, 2024, inclusive (the “Class Period”).
The Class Period begins on March 2, 2023. On that day, IAS issued a press release announcing its financial results for fourth quarter and full year ended December 31, 2022, including that “We reported positive fourth quarter results with growth across all business lines” and that the company is “off to a solid start to 2023 and expect full-year, double-digit revenue growth as we drive customer adoption of our industry-leading products.”
On August 3, 2023, after the market closed, IAS announced its second quarter 2023 financial results. IAS revealed that its Optimization business revenue only grew 10% year-over-year to $52.8 million and had meaningfully slowed compared to every previous quarter reported since the company’s initial public offering in June 2021. On the corresponding earnings call, IAS’s CFO at the time attributed the poor Optimization growth to “maturing Context Control growth” which was “partially offset by slower demand from tech/telco clients.” On this news, the price of IAS common stock declined $3.66 per share, or nearly 20%, from a close of $18.83 per share on August 3, 2023, to close at $15.17 per share on August 4, 2023.
On February 27, 2024, after the market closed, IAS announced its fourth quarter 2023 financial results and revealed first quarter 2024 and full year 2024 revenue guidance substantially below analyst estimates. On the corresponding earnings call, IAS’s CEO stated, “[w]e are seeing more competitive pricing in Measurement on a select group of large contract renewals in exchange for increased volume commitments and multi-year exclusive agreements.” On this news, the price of IAS common stock declined $7.09 per share, or more than 41%, from a close of $17.10 per share on February 27, 2024, to close at $10.01 per share on February 28, 2024.
The complaint 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 misrepresented and/or failed to disclose that: (1) IAS was experiencing increased competitive pricing pressures and, as a result, IAS had been forced to cut prices to compensate for weakening demand and slowing revenue growth; (2) IAS’s pricing function was no longer “favorable” and IAS could not sustain its pricing or drive price increases; (3) pricing had become a key differentiator between IAS and its competitor, and IAS’s “favorable” pricing became necessary to close major renewals and new deals; (4) the risk that competition “could result in increased pricing pressure” or “could put pressure on us to change our prices” had in fact transpired; and (5) as a result, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.