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Levi & Korsinsky LLP
05/07/2026 | Press release | Distributed by Public on 05/07/2026 08:07
Oddity Investors Sue Over Alleged Ad Model Misstatements
Oddity Tech told investors its AI-driven beauty platform was delivering strong growth and profitability.
But behind the scenes, something was going very wrong.
In February 2025, the company celebrated strong revenue growth and said its direct to consumer strategy was thriving. Through April, August, and November 2025, executives kept raising guidance and promising continued momentum.
What investors allegedly didn't know was that an algorithm change by Oddity's largest advertising partner was diverting ads into lower-quality auctions. Oddity's ads were diverted into lower-quality auctions, driving customer acquisition costs sharply higher.
Then on February 25, 2026, the truth came out. Oddity disclosed the disruption and warned first-quarter 2026 revenue could fall about 30% year over year.
Investors panicked. The stock collapsed about 49% in a single day.
Now, a securities class action alleges investors were misled.
Levi & Korsinsky LLP published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 14:07 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]