Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against The Trade Desk, Inc. (TTD)

/EIN News/ -- NEW YORK, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired The Trade Desk, Inc. (“Trade Desk” or the “Company”) (NASDAQ: TTD) securities between May 9, 2024 and February 12, 2025, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.

The Complaint alleges that 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, the Complaint alleges that the Defendants failed to disclose to investors that: (1) Trade Desk was experiencing significant, ongoing, self-inflicted execution challenges rolling out Kokai, including transitioning clients to Kokai from the Company’s older platform Solimar; (2) such execution challenges meaningfully delayed the Kokai Rollout; (3) Trade Desk’s inability to effectively execute the Kokai Rollout negatively impacted the Company’s business and operations, particularly revenue growth; and (4) as a result of the above, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

The Complaint alleges that the truth emerged after markets closed on February 12, 2025, when Trade Desk issued a press release announcing its financial results for the fourth quarter and full year of 2024. The Complaint alleges that in the press release, Trade Desk reported fourth quarter revenue of $741 million—below the Company’s previously issued guidance of $756 million and analysts’ estimates of $759.8 million. The Complaint further alleges that additionally, Trade Desk’s revenue guidance of at least $575 million for the first quarter of 2025 missed analysts’ estimates of $581.5 million.

The Complaint further alleges that during the earnings call held that same day, CEO Green disclosed that Trade Desk has yet to reach full adoption of Kokai, as the Company is “maintaining 2 systems, Solimar and Kokai. This slows us down.” The Complaint further alleges that later, on that same call, in response to a Cannonball Research analyst expressing concern regarding “issues with Kokai rollout pace,” CEO Green simply stated, “you’re right, that Kokai rolled out slower than we anticipated.” The Complaint alleges that however, while addressing that same analyst question, CEO Green later explained that “in some cases, the slower Kokai rollout was deliberate.”

According to the Complaint on this news, the price of Trade Desk Class A common stock dropped $40.31 per share, or more than 32%, from a closing price of $122.23 per share on February 12, 2025, to a closing price of $81.92 per share on February 13, 2025.

Investors who purchased or otherwise acquired shares of Trade Desk should contact the Firm prior to the April 21, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.