A securities class action has been filed against Oddity Tech Ltd. (ODD) on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Oddity securities between February 26, 2025 through February 24, 2026. This case has been filed in the USDC – SDNY.
On February 25, 2026, Oddity announced its Q4 and full-year 2025 financial results. The Company claimed it had “experienced a dislocation in our account with our largest advertising partner that we believe was driven by algorithm changes which diverted us to lower quality auctions at abnormally high costs.” Following this news, Oddity’s stock price dropped more than 49.2% on the same day.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) due to an algorithm change by Oddity’s largest advertising partner, Oddity’s advertisements were being diverted to lower quality auctions at abnormally high costs; (ii) the foregoing significantly increased Oddity’s customer acquisition costs, thereby negatively impacting Oddity’s business and financial prospects; (iii) accordingly, Defendants overstated the overall strength, stability, and sustainability of Oddity’s digital operating model and/or market position; and (iv) as a result, Defendants’ public statements were materially false and misleading at all relevant times.