(MENAFN- GlobeNewsWire - Nasdaq) SAN FRANCISCO, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Zeta Global Holdings Corp. (NYSE: ZETA) experienced a significant decline in its share price on November 13, 2024, following the publication of an explosive short report by short seller Culper Research, titled“Zeta Global Holdings Corp ZETA: Shams, Scams, and Spam.”
Hagens Berman has begun an investigation into the matter and urges investors in Zeta who purchased shares and suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist the investigation to contact the firm's attorneys.
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Investigation Into Zeta Global Holdings Corp. (ZETA):
The investigation focuses on the propriety of Zeta's disclosures concerning its business practices, including revenue recognition and sources of growth.
The company's disclosures may have come into question on November 13, 2024 coincident with Culper's report, which Culper said was based in part on conversations with multiple former Zeta employees. Culper alleges that there are two reasons that“undermine the integrity of the Company's data collection and reported financials.”
First, Culper concluded,“we believe that Zeta has formed 'two-way' contracts with third party consent farms wherein the Company simultaneously acts as both a supplier and buyer of consumer data, not only allowing the Company to flatter reported revenue growth, but raising round tripping concerns.” (Zeta's February 28, 2024 annual report contains the outside auditor's identification of- without providing an opinion on- revenue recognition related to“contracts with third parties in which the Company is acting as both a vendor and customer as a critical audit matter because of the judgments necessary for management to evaluate whether goods or services are distinct and to estimate the fair value of the goods or services provided or received.”)
Second, Culper concluded,“we believe that Zeta has quietly spun up its own network of consent farms i.e., sham websites that hoodwink millions of consumers each month into handing their data over to Zeta under false pretenses, baited by job applications, stimulus money, or other rewards that simply do not exist[]” and“[w]e believe that these consent farms have driven almost the entirety of Zeta's growth over the last 2+ years and now represent 56% of reported Adj. EBITDA.”
In response, the price of Zeta shares crashed $10.46, or 37% lower, on November 13, 2024.
“We're focused on whether Zeta may have misled investors about its business practices and prospects,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Zeta and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now ))
If you'd like more information and answers to frequently asked questions about the Zeta Global investigation, read more ))
Whistleblowers: Persons with non-public information regarding Zeta Global Holdings should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ... .
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com . Follow the firm for updates and news at @ClassActionLaw .
Contact:
Reed Kathrein, 844-916-0895
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