SAN DIEGO, July 22, 2024 (GLOBE NEWSWIRE) — Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Oddity Tech Ltd. (NASDAQ: ODD) securities between July 19, 2023 and May 20, 2024. Oddity describes itself as “a consumer tech platform that is built to transform the global beauty and wellness market.”
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The Allegations: Robbins LLP is Investigating Allegations that Oddity Tech Ltd. (ODD) Misled Investors Regarding its AI Technology and Capabilities
According to the complaint, during the class period, defendants failed to disclose that: (i) Oddity overstated its AI technology and capabilities, and/or the extent to which this technology drove the Company’s sales; (ii) Oddity’s repeat purchase rates and revenues were, at least in part, derived from unsustainable and deceptive sales and advertising practices; (iii) Oddity downplayed the true scope and severity of ongoing civil litigation against the Company and/or its subsidiaries; and (iv) as a result, Oddity’s public statements were materially false and misleading at all relevant times.
The complaint alleges that on May 21, 2024, NINGI Research published a report regarding Oddity, alleging that the Company “completely misled investors about every critical aspect of its business[.]” In particular, the Ningi Report alleged, inter alia, that Ningi “talked to former employees who told [Ningi] that the [Company’s] AI is nothing but a questionnaire”; that Oddity’s lauded “repeat purchase rates” are attributable to “customers unknowingly enter[ing] into non-cancelable plans” that allow the Company “to recognize repeat purchases in the following quarters even though the customers don’t want the product”; and that Ningi had “found hundreds of undisclosed lawsuits filed against ODDITY and its subsidiaries in the US and Israel, frequently alleging unpaid bills and violations of consumer protection laws,” including multiple class action lawsuits filed within the past several years. On this news, Oddity’s Class A ordinary share price fell $3.02 per share, or 7.37%, to close at $37.97 per share on May 21, 2024. Oddity’s Class A ordinary share price continued to decline by an additional $1.30 per share, or 3.42%, over the following two consecutive trading sessions, closing at $36.67 per share on May 23, 2024.
What Now: You may be eligible to participate in the class action against Oddity Tech Ltd. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by September 17, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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