Direct Digital Holdings, Inc. (NASDAQ: DRCT)

This investigation is for anyone who acquired securities in Direct Digital Holdings, Inc. (NASDAQ: DRCT) from November 9, 2023 through April 1, 2024.

The Law Offices of Howard G. Smith believes that the Company and certain of its executives violated federal law. Specifically, the Law Offices of Howard G. Smith believes that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the Law Offices of Howard G. Smith believes that the Company misled investors by knowing, but failing to timely disclose to investors that efforts the Company was making towards transitioning to a cookie-less advertising platform would negatively effect the Company’s fourth quarter 2023 growth.

On March 26, 2024, Direct Digital released its fourth quarter and full year 2023 financial results, missing revenue growth estimates due to “efforts . . . to accelerate the transition towards a cookie-less advertising platform.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on April 2, 2024, Direct Digital disclosed that a material weakness had been “identified in [its] review of internal control over financial reporting as of December 31, 2023.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Direct Digital Holdings, Inc. (NASDAQ: DRCT) from November 9, 2023 through April 1, 2024 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.