ODDITY Tech Faces Class Action Lawsuit Following 49% Stock Plunge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy ODD?
Source: Globenewswire
- Stock Plunge: ODDITY Tech's American Depositary Shares plummeted 49% on February 25, 2026, resulting in a market capitalization loss exceeding $600 million, indicating severe investor concerns about the company's financial outlook.
- Revenue Downgrade: The company anticipates a staggering 30% year-over-year decline in Q1 2026 revenue, a revelation that triggered a strong market reaction and heightened investor anxiety.
- Lawsuit Initiated: A securities class action lawsuit has been filed against ODDITY, alleging that the company misled investors regarding the profitability and growth potential of its AI-driven platform without disclosing critical algorithm changes.
- Ongoing Investigation: Hagens Berman is investigating whether ODDITY intentionally concealed the deterioration of its relationship with its largest advertising partner, which significantly increased customer acquisition costs and adversely affected the company's overall business performance.
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Analyst Views on ODD
Wall Street analysts forecast ODD stock price to rise
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 14.290
Low
49.00
Averages
66.63
High
80.00
Current: 14.290
Low
49.00
Averages
66.63
High
80.00
About ODD
Oddity Tech Ltd is an Israel-based company engaged in the beauty and wellness sector. The Company is operating a tech platform under its own brand on the Internet, whose purpose is to support a portfolio of brands and services connected to the beauty and wellness market and to develop products customized to the wishes of the Company's clients. The Company is using algorithms and machine learning models to match a corresponding physical product. Advanced biological models and machine learning-based tools are used to find new molecules for beauty and wellness purposes. The Company is active in research and development in areas such as data science, machine learning, and computer vision to enhance its products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Class Action Filed Against Oddity for Misleading Statements
- Lawsuit Background: Bragar Eagel & Squire has filed a class action lawsuit against Oddity Tech Ltd. on behalf of investors who purchased Oddity securities between February 26, 2025, and February 24, 2026, alleging that the company made false and misleading statements that affected investor decisions during this period.
- Details of Misleading Statements: The lawsuit claims that due to an algorithm change by Oddity's largest advertising partner, advertisements were diverted to lower-quality auctions, significantly increasing customer acquisition costs and negatively impacting the company's financial outlook, leading investors to misunderstand the company's stability.
- Stock Price Reaction: On February 25, 2026, Oddity's CEO Holtzman confirmed the algorithm change during the earnings release, stating it resulted in a significant increase in new user acquisition costs, causing the stock price to plummet by 49.21% to close at $14.74 per share, reflecting market disappointment in the company's prospects.
- Investor Action: Investors must apply by May 11, 2026, to be appointed as lead plaintiffs in the lawsuit, with Bragar Eagel & Squire offering consultation services to help investors understand their legal rights and potential claims.
See More
ODDITY Tech Faces Class Action Lawsuit Following 49% Stock Plunge
- Stock Plunge: ODDITY Tech's American Depositary Shares plummeted 49% on February 25, 2026, resulting in a market capitalization loss exceeding $600 million, indicating severe investor concerns about the company's financial outlook.
- Revenue Downgrade: The company anticipates a staggering 30% year-over-year decline in Q1 2026 revenue, a revelation that triggered a strong market reaction and heightened investor anxiety.
- Lawsuit Initiated: A securities class action lawsuit has been filed against ODDITY, alleging that the company misled investors regarding the profitability and growth potential of its AI-driven platform without disclosing critical algorithm changes.
- Ongoing Investigation: Hagens Berman is investigating whether ODDITY intentionally concealed the deterioration of its relationship with its largest advertising partner, which significantly increased customer acquisition costs and adversely affected the company's overall business performance.
See More
Multiple Companies Face Class Action Lawsuits
- ODDITY Lawsuit Overview: ODDITY Tech Ltd. faces a class action lawsuit due to an algorithm change by its largest advertising partner that significantly increased customer acquisition costs, with investors needing to file a lead plaintiff motion by May 11, 2026, highlighting the fragility of the company's operational model.
- CHOW Market Manipulation Allegations: ChowChow Cloud International Holdings Limited is accused of being involved in market manipulation and fraudulent promotion, requiring investors to apply for lead plaintiff status by May 12, 2026, indicating serious deficiencies in the company's market transparency and compliance.
- Grocery Outlet Expansion Risks: Grocery Outlet Holding Corp. is facing a class action lawsuit due to its inability to achieve sustainable growth from rapid expansion, with a lead plaintiff deadline of May 15, 2026, reflecting significant risks in the company's strategic execution.
- Alight Performance Misrepresentation: Alight, Inc. is facing a class action lawsuit for failing to accurately disclose its performance and the inadequacy of its sales team, with a lead plaintiff deadline of May 12, 2026, underscoring a severe disconnect between management expectations and actual operations.
See More
ODDITY Tech Faces Securities Class Action Lawsuit
- Stock Price Plunge: ODDITY Tech's American Depositary Shares plummeted 49% on February 25, 2026, erasing over $600 million in market capitalization, indicating severe market concerns regarding its financial outlook.
- Revenue Downgrade: The company anticipates a 30% year-over-year decline in Q1 2026 revenue, triggering strong investor reactions and further questioning the sustainability of its business model.
- Lawsuit Allegations: Hagens Berman has filed a class action lawsuit against ODDITY, alleging that the company misled investors by failing to disclose critical algorithm changes that significantly increased customer acquisition costs and negatively impacted financial performance.
- Ongoing Investigation: The law firm is investigating whether ODDITY intentionally concealed the deterioration of its relationship with its largest advertising partner, which, if proven, could have significant implications for the company's future legal liabilities and market trust.
See More
ODDITY Tech Faces Securities Class Action Lawsuit
- Executive Accountability: ODDITY Tech's CEO Oran Holtzman and CFO Lindsay Drucker Mann are named in a securities class action for failing to disclose advertising algorithm disruptions, resulting in a $14.28 per share loss for shareholders, marking a 49.21% decline on February 25, 2026.
- False Financial Reporting: The certifications signed by both executives under the Sarbanes-Oxley Act in the 2024 Annual Report are alleged to be false, as the company did not disclose the surge in advertising costs that impacted customer acquisition expenses.
- Cost Surge: In Q1 2025, ODDITY's selling, general, and administrative expenses skyrocketed from $117.125 million to $158.183 million year-over-year, indicating significant mismanagement in advertising spending that could affect future financial performance.
- Legal Implications: Investors must submit information by May 11, 2026, to be considered for recovery, as the executives may face serious legal consequences for failing to ensure the accuracy and completeness of the company's public statements.
See More
Oddity Tech Faces Class Action Lawsuit for Securities Violations
- Class Action Reminder: The Schall Law Firm alerts investors that Oddity Tech Ltd. is facing a class action lawsuit for violations of §§10(b) and 20(a) of the Securities Exchange Act, involving securities purchasers from February 26, 2025, to February 24, 2026, with a deadline to contact the firm by May 11, 2026, to participate.
- False Statement Allegations: The complaint alleges that Oddity made false and misleading statements regarding its operating model's strength, as a change in algorithms by a major ad partner led to poor-quality ad placements and significantly increased customer acquisition costs, harming the company's business performance.
- Market Reaction Impact: When the market learned the truth about Oddity, investors suffered damages, indicating that the company's public statements were false and materially misleading throughout the class period, which could lead to significant stock price volatility.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected investors to reach out to discuss their rights, highlighting the firm's specialization in securities class action lawsuits and shareholder rights litigation aimed at helping investors recover losses.
See More
Class Action Filed Against Oddity for Misleading Statements
- Lawsuit Background: Bragar Eagel & Squire has filed a class action lawsuit against Oddity Tech Ltd. on behalf of investors who purchased Oddity securities between February 26, 2025, and February 24, 2026, alleging that the company made false and misleading statements that affected investor decisions during this period.
- Details of Misleading Statements: The lawsuit claims that due to an algorithm change by Oddity's largest advertising partner, advertisements were diverted to lower-quality auctions, significantly increasing customer acquisition costs and negatively impacting the company's financial outlook, leading investors to misunderstand the company's stability.
- Stock Price Reaction: On February 25, 2026, Oddity's CEO Holtzman confirmed the algorithm change during the earnings release, stating it resulted in a significant increase in new user acquisition costs, causing the stock price to plummet by 49.21% to close at $14.74 per share, reflecting market disappointment in the company's prospects.
- Investor Action: Investors must apply by May 11, 2026, to be appointed as lead plaintiffs in the lawsuit, with Bragar Eagel & Squire offering consultation services to help investors understand their legal rights and potential claims.
See More
ODDITY Tech Faces Class Action Lawsuit Following 49% Stock Plunge
- Stock Plunge: ODDITY Tech's American Depositary Shares plummeted 49% on February 25, 2026, resulting in a market capitalization loss exceeding $600 million, indicating severe investor concerns about the company's financial outlook.
- Revenue Downgrade: The company anticipates a staggering 30% year-over-year decline in Q1 2026 revenue, a revelation that triggered a strong market reaction and heightened investor anxiety.
- Lawsuit Initiated: A securities class action lawsuit has been filed against ODDITY, alleging that the company misled investors regarding the profitability and growth potential of its AI-driven platform without disclosing critical algorithm changes.
- Ongoing Investigation: Hagens Berman is investigating whether ODDITY intentionally concealed the deterioration of its relationship with its largest advertising partner, which significantly increased customer acquisition costs and adversely affected the company's overall business performance.
See More
Multiple Companies Face Class Action Lawsuits
- ODDITY Lawsuit Overview: ODDITY Tech Ltd. faces a class action lawsuit due to an algorithm change by its largest advertising partner that significantly increased customer acquisition costs, with investors needing to file a lead plaintiff motion by May 11, 2026, highlighting the fragility of the company's operational model.
- CHOW Market Manipulation Allegations: ChowChow Cloud International Holdings Limited is accused of being involved in market manipulation and fraudulent promotion, requiring investors to apply for lead plaintiff status by May 12, 2026, indicating serious deficiencies in the company's market transparency and compliance.
- Grocery Outlet Expansion Risks: Grocery Outlet Holding Corp. is facing a class action lawsuit due to its inability to achieve sustainable growth from rapid expansion, with a lead plaintiff deadline of May 15, 2026, reflecting significant risks in the company's strategic execution.
- Alight Performance Misrepresentation: Alight, Inc. is facing a class action lawsuit for failing to accurately disclose its performance and the inadequacy of its sales team, with a lead plaintiff deadline of May 12, 2026, underscoring a severe disconnect between management expectations and actual operations.
See More
ODDITY Tech Faces Securities Class Action Lawsuit
- Stock Price Plunge: ODDITY Tech's American Depositary Shares plummeted 49% on February 25, 2026, erasing over $600 million in market capitalization, indicating severe market concerns regarding its financial outlook.
- Revenue Downgrade: The company anticipates a 30% year-over-year decline in Q1 2026 revenue, triggering strong investor reactions and further questioning the sustainability of its business model.
- Lawsuit Allegations: Hagens Berman has filed a class action lawsuit against ODDITY, alleging that the company misled investors by failing to disclose critical algorithm changes that significantly increased customer acquisition costs and negatively impacted financial performance.
- Ongoing Investigation: The law firm is investigating whether ODDITY intentionally concealed the deterioration of its relationship with its largest advertising partner, which, if proven, could have significant implications for the company's future legal liabilities and market trust.
See More
ODDITY Tech Faces Securities Class Action Lawsuit
- Executive Accountability: ODDITY Tech's CEO Oran Holtzman and CFO Lindsay Drucker Mann are named in a securities class action for failing to disclose advertising algorithm disruptions, resulting in a $14.28 per share loss for shareholders, marking a 49.21% decline on February 25, 2026.
- False Financial Reporting: The certifications signed by both executives under the Sarbanes-Oxley Act in the 2024 Annual Report are alleged to be false, as the company did not disclose the surge in advertising costs that impacted customer acquisition expenses.
- Cost Surge: In Q1 2025, ODDITY's selling, general, and administrative expenses skyrocketed from $117.125 million to $158.183 million year-over-year, indicating significant mismanagement in advertising spending that could affect future financial performance.
- Legal Implications: Investors must submit information by May 11, 2026, to be considered for recovery, as the executives may face serious legal consequences for failing to ensure the accuracy and completeness of the company's public statements.
See More
Oddity Tech Faces Class Action Lawsuit for Securities Violations
- Class Action Reminder: The Schall Law Firm alerts investors that Oddity Tech Ltd. is facing a class action lawsuit for violations of §§10(b) and 20(a) of the Securities Exchange Act, involving securities purchasers from February 26, 2025, to February 24, 2026, with a deadline to contact the firm by May 11, 2026, to participate.
- False Statement Allegations: The complaint alleges that Oddity made false and misleading statements regarding its operating model's strength, as a change in algorithms by a major ad partner led to poor-quality ad placements and significantly increased customer acquisition costs, harming the company's business performance.
- Market Reaction Impact: When the market learned the truth about Oddity, investors suffered damages, indicating that the company's public statements were false and materially misleading throughout the class period, which could lead to significant stock price volatility.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected investors to reach out to discuss their rights, highlighting the firm's specialization in securities class action lawsuits and shareholder rights litigation aimed at helping investors recover losses.
See More
