Labaton Keller Sucharow LLP Files Securities Class Action Lawsuit Against The Trade Desk, Inc. and Certain of Its Executives
NEW YORK–(BUSINESS WIRE)–
Labaton Keller Sucharow LLP (“Labaton”) announces that, on March 5, 2025, it filed a securities class action lawsuit (the “Complaint”) on behalf of its client New England Teamsters Pension Fund (“New England Teamsters”) against The Trade Desk, Inc. (“Trade Desk” or the “Company”) (NASDAQ: TTD) and certain Trade Desk officers (collectively, “Defendants”). This action, which is captioned New England Teamsters Pension Fund v. The Trade Desk, Inc., No. 2:25-cv-01936 (C.D. Cal.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder, on behalf of all persons and entities that purchased or otherwise acquired Trade Desk Class A common stock between May 9, 2024 and February 12, 2025, inclusive (the “Class Period”).
The Complaint is related to two previously filed actions against Trade Desk captioned United Union of Roofers, Waterproofers & Allied Workers Local Union No. 8 WBPA Fund v. The Trade Desk, Inc., No. 25-cv-01396 (C.D. Cal.) (the “United Union of Roofers Action”) and Savorelli v. The Trade Desk, Inc., No. 25-cv-01915 (C.D. Cal.) (the “Savorelli Action”). The United Union of Roofers Action was filed on February 19, 2025, on behalf of all persons or entities that purchased Trade Desk Class A common stock during the Class Period. The Savorelli Action was filed on March 5, 2025, on behalf of persons and entities that purchased or otherwise acquired Trade Desk Class A common stock or call options, or sold Trade Desk put options, during the Class Period. The Complaint expands upon the United Union of Roofers Action and the Savorelli Action by naming Trade Desk’s Chief Strategy Officer, Samantha Jacobson, as an additional Defendant and by adding fraud allegations concerning Defendants’ misstatements that misled Trade Desk’s investors by downplaying the Company’s competition.
Trade Desk is a Ventura, California-based technology company that operates a digital platform that helps advertisers place ads on websites, podcasts, and streaming services. The Complaint alleges that, throughout the Class Period, Defendants failed to disclose that: (1) Trade Desk was experiencing significant performance issues with the rollout of its new Kokai advertising platform that were negatively impacting customer adoption; (2) Trade Desk was deliberately slowing the pace of its Kokai rollout to maximize short-term profits; (3) competition from Amazon and other competing platforms was taking substantial market share away from Trade Desk; (4) Trade Desk’s engineering and sales teams were not adequately structured to support the Kokai rollout and fend off mounting competition; and (5) as a result of the forgoing, Defendants’ positive statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
The truth about the Company’s unsuccessful Kokai rollout and its loss of market share to competing platforms was revealed to the market on February 12, 2025. On that date, Trade Desk disclosed that its fourth quarter 2024 revenue missed analysts’ forecasts due to a series of execution missteps with the Kokai rollout that prompted a major corporate restructuring. In reaction to these results, analysts were not only surprised by the failed Kokai rollout but expressed concern about Trade Desk’s mounting competition. For example, analysts at RBC Capital Markets stated that the “results likely build on investor competitive concerns.” On this news, Trade Desk’s stock price fell $40.31 per share, or 33 percent, to close at $81.92 per share on February 13, 2025.
Pursuant to the notice published on February 19, 2025 in connection with the filing of the United Union of Roofers Action, as required by the Private Securities Litigation Reform Act of 1995, if you purchased Trade Desk Class A common stock during the Class Period and were damaged thereby, you are a member of the proposed “Class” and may be able to seek appointment as Lead Plaintiff. Additionally, if you purchased or otherwise acquired Trade Desk call options, or sold Trade Desk put options, during the Class Period and were damaged thereby, you are also a member of the proposed Class and may be able to seek appointment as Lead Plaintiff. If you wish to serve as Lead Plaintiff in these related securities actions, a motion on your behalf must be filed with the U.S. District Court for the Central District of California no later than April 21, 2025. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member.
You may contact Francis P. McConville, Esq. of Labaton at [email protected] to discuss your rights regarding the appointment of Lead Plaintiff or your interest in this matter. You may also retain counsel of your choice to represent you in this class action lawsuit. You can view a copy of the Complaint online here.
New England Teamsters is represented by Labaton, which represents many of the largest pension funds in the United States and internationally with combined assets under management of more than $4.5 trillion. Labaton’s litigation reputation is built on its half-century of securities litigation experience, more than ninety full-time attorneys, and in-house team of investigators, financial analysts, and forensic accountants. Labaton has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, Delaware, London, and Washington, D.C. More information about Labaton is available at labaton.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250305621789/en/
Francis P. McConville, Esq.
Labaton Keller Sucharow LLP
(212) 907-0650
[email protected]
KEYWORDS: United States North America New York
INDUSTRY KEYWORDS: Class Action Lawsuit Professional Services Legal
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