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Trade Desk (TTD) Faces Class Action Suit Over Alleged Kokai Rollout Stumbles Hagens Berman
Globe Newswire 21-Feb-2025 4:50 PM
SAN FRANCISCO, Feb. 21, 2025 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed against The Trade Desk, Inc. (NASDAQ:TTD), a prominent advertising technology firm, alleging that the company and certain executives engaged in fraudulent practices related to the company's rollout of Kokai, a generative artificial intelligence forecasting tool that enables users to more effectively deploy advertising spend. The suit, captioned United Union of Roofers, Waterproofers & Allied Workers Local Union No. 8 WBPA Fund v. The Trade Desk, Inc. et al., No. 2:25-cv-01396 (C.D. Cal.), represents investors who purchased or acquired The Trade Desk common stock between May 9, 2024 and February 12, 2025.
Hagens Berman is investigating the alleged claims and urges investors who purchased The Trade Desk shares and suffered substantial losses to submit your losses now.
The Trade Desk, Inc. (TTD) Securities Class Action:
The complaint alleges that The Trade Desk made false and misleading statements, while failing to disclose crucial information. Specifically, the suit contends that The Trade Desk has repeatedly touted the role of Kokai in propelling the company's growth even though, unknown to investors, the company was experiencing significant, ongoing, self-inflicted execution challenges rolling out Kokai. Furthermore, it alleges, such execution challenges meaningfully delayed Kokai's rollout and that the delay negatively impacted the company's revenue growth.
Investors learned the truth on February 12, 2025, when The Trade Desk reported Q4 2024 revenue that was well below the company's guidance and analysts' estimates.
In addition, the company's CEO (Jeffery Terry Green) admitted during the earnings call held the same day that the company had not yet transitioned all its clients to Kokai, revealed that the company was still maintaining 2 systems (Solimar and Kokai), and (in stark contrast to earlier bullish pronouncements) revealed that "in some cases, the slower Kokai rollout was deliberate."
The market reacted swiftly. On February 13, 2025, Trade Desk's stock price plummeted by over 30%, erasing over $18 billion in market capitalization in a single trading day.
"We are concerned that Trade Desk may have misled investors about the true performance and rollout of its Kokai platform," said Reed Kathrein, the Hagens Berman Partner leading the firm's probe. "Our investigation will focus on the timing and accuracy of Trade Desk's statements regarding Kokai, and whether the company knew or recklessly disregarded information suggesting a slower rollout than it publicly represented."
If you invested in Trade Desk 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 Trade Desk case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Trade Desk 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 TTD@hbsslaw.com.
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.
