NEW YORK, Dec. 14, 2023 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors of Direct Digital Holdings, Inc. (“DDH” or the “Company”) (NASDAQ: DRCT). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.
The investigation concerns whether DDH and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On December 11, 2023, White Diamond Research published a report entitled “A Mountain of Evidence Suggests That Much of Direct Digital Holdings Revenue May Be Fake and Is Hiding Its Uncollectible Accounts Receivable – 90%+ Downside” (the “White Diamond Report”). The White Diamond Report alleges that “[DDH] uses ‘accounts receivable insurance’ to hide from investors what its true uncollectible accounts receivable is”, which “puts the quality of the revenue in question”; notes that “[DDH] doesn’t mention any patents and reports zero R&D expense for its technology”, which “suggests that its tech isn’t proprietary and isn’t improving to keep up with the strong competition in the space”; and asserts that “[DDH] is practically broke, with a reported $5.5M in cash, accounts payable that almost doubled quarter over quarter to $45M, and a sizeable debt of $24M with a 15% interest rate.”
On this news, DDH’s stock price fell $1.39 per share, or 11.31%, to close at $10.90 per share on December 11, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
