Robbins Geller Rudman & Dowd LLP has announced a class action lawsuit against The Trade Desk, Inc. (NASDAQ: TTD), a leading technology company that offers a self-service, cloud-based advertising platform.
The lawsuit, which covers the period between May 9, 2024 and February 12, 2025, accuses Trade Desk of failing to disclose issues surrounding its AI tool, Kokai, which led to significant stock losses.
The lawsuit, filed under the caption United Union of Roofers, Waterproofers & Allied Workers Local Union No. 8 WBPA Fund v. The Trade Desk, Inc. in the Central District of California (Case No. 25-cv-01396), alleges that Trade Desk’s executives misled investors about the AI tool’s rollout and its impact on the company's financial health.
According to the class action complaint, Trade Desk faced significant internal challenges with the rollout of its AI forecasting tool, Kokai, which launched on June 6, 2023.
The lawsuit claims that Trade Desk concealed these issues from investors, failing to disclose the difficulties it faced transitioning clients from its older platform, Solimar, to the new AI tool. This failure led to delays in the Kokai rollout and hurt the company's operations and revenue growth.
Furthermore, the complaint details how Trade Desk's February 12, 2025, earnings report revealed financial results that were below expectations, with the company reporting $741 million in fourth-quarter revenue, falling short of its previous guidance of $756 million.
The company provided first-quarter 2025 revenue guidance of $575 million, which missed analysts' projections of $581.5 million. This news caused Trade Desk’s stock to drop by more than 32%.
Investors who purchased Trade Desk Class A common stock during the class period are eligible to seek appointment as lead plaintiff in the class action lawsuit.
The deadline to apply for lead plaintiff status is April 21, 2025. As the lead plaintiff, an investor will represent the interests of the entire class and have the ability to select the law firm of their choice to litigate the case.
Under the Private Securities Litigation Reform Act of 1995, any investor who suffered losses during the class period can take part in the case, even if they are not appointed as the lead plaintiff.
If you believe you are eligible to be part of the class action and wish to serve as the lead plaintiff, you can submit your information here. Alternatively, you can contact J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or emailing info@rgrdlaw.com for more information.
The Trade Desk is a global technology company that provides a self-service, cloud-based platform for managing digital advertising campaigns. Founded in 2009, it focuses on offering data-driven solutions that help marketers reach their target audiences with precision.
The company's platform enables advertisers to purchase and manage ads across various channels, including display, video, audio, and social media, using artificial intelligence (AI) and machine learning technologies to optimize ad performance.
Headquartered in Ventura, California, The Trade Desk serves clients worldwide, allowing businesses to leverage real-time data for smarter ad decisions and better ROI. The company is listed on the NASDAQ under the ticker symbol TTD.
Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities class action litigation, shareholder derivative actions, and consumer protection cases. Established in 1992, the firm has earned a reputation for its expertise in handling complex legal matters on behalf of institutional investors, individuals, and consumer groups. With a team of skilled attorneys, Robbins Geller is known for its dedication to securing justice and maximizing recoveries for clients, often representing those who have suffered significant financial losses. The firm has a history of success in landmark cases, and its attorneys are recognized as leaders in the field of securities litigation. Robbins Geller operates nationwide and has offices in major U.S. cities.
