Oddity Tech Hit With Securities Suits After Ad-Algorithm Disruption and 49% Stock Plunge

Investors have until May 11 to seek lead-plaintiff status in cases tied to an ad-platform algorithm shift that preceded a 49% share drop.

Overview

Several shareholder firms, including DJS, Schall, Glancy, Rosen, and Hagens Berman, issued notices Monday and Tuesday seeking investors to lead class actions by the May 11 deadline.
The complaints say an algorithm change at Oddity’s biggest ad partner pushed its ads into lower quality auctions at unusually high prices, which drove up the cost to win new customers.
The company disclosed on February 25 that it expects first-quarter 2026 revenue to fall about 30% from a year earlier, and the stock closed down 49% that day, erasing more than $600 million in value.
Plaintiffs argue Oddity overstated the strength and stability of its AI-driven growth model, while management told analysts they only noticed “something was different” in the second half of 2025.
No class has been certified, the suits cover trades from February 26, 2025 to February 24, 2026, and firms are also soliciting tips from potential whistleblowers through SEC programs.