NEW YORK, March 11, 2025 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Digimarc Corporation (“Digimarc Corporation” or the “Company”) (NASDAQ: DMRC) securities between May 2, 2024 and February 26, 2025, inclusive (the “Class Period”).
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) a large commercial partner would not renew a large contract on the same terms; (iii) as a result, the Company would renegotiate the large commercial contract; and (iii) consequently, the Company’s subscription revenue and annual recurring revenue would be adversely affected.
The Complaint further alleges that on February 26, 2025, the Company released its fourth quarter and full year 2024 financial results, revealing the Company’s quarterly subscription revenue decreased 10% to $5.0 million (compared to $5.6 million in the previous year) and annual recurring revenue had decreased to $20.0 million (compared to $22.3 million in the previous year). According to the Complaint, these declines “primarily reflect[ed] a $5.8 million decrease in ARR [annual recurring revenue] due to the expiration of a commercial contract in June 2024.” On this news, the price of the Company stock fell more than 43%.
Investors who purchased or otherwise acquired shares of Digimarc should contact the Firm prior to the May 9, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
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