ODDITY Faces Securities Class Action After Ad-Partner Algorithm Disclosure

Overview

• Plaintiff firms, which publicized their filings and probes Monday, are recruiting investors to lead a case over alleged misstatements tied to ODDITY Tech's growth claims.
• The suits follow ODDITY's February 25, 2026 disclosure that an algorithm change at its largest advertising partner pushed its ads into lower-quality auctions at higher costs, which raised customer acquisition costs.
• After that disclosure, the company forecast a 30% year-over-year revenue drop for the first quarter of 2026 and its American depositary shares fell about 49%, erasing more than $600 million in value.
• The complaint, filed in the Southern District of New York, names CEO Oran Holtzman and CFO Lindsay Drucker Mann as individual defendants and cites their roles in public filings and Sarbanes-Oxley certifications.
• Hagens Berman and other firms are seeking witnesses and whistleblowers, including through the SEC program, as the case moves toward lead-plaintiff selection and potential discovery.