ODDITY Tech Investors Seek Lead Plaintiff Role in Class Action

Hagens Berman investigates claims of securities law violations after 49% stock plunge

Apr. 8, 2026 at 10:29pm by Ben Kaplan

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A high-end, photorealistic studio still-life photograph featuring a stack of stock trading documents, a broken calculator, and a shattered mobile phone screen, symbolizing the abstract concepts of corporate finance, risk, and market volatility.The collapse of ODDITY Tech's stock price has triggered a class action lawsuit, exposing the risks and consequences of alleged financial misrepresentations.San Francisco Today

A securities class action lawsuit has been filed against ODDITY Tech. Ltd. (NASDAQ: ODD), seeking to represent investors who purchased ODDITY securities between February 26, 2025 and February 24, 2026. The lawsuit follows a 49% decline in ODDITY's stock price on February 25, 2026, after the company announced a 30% year-over-year decline in Q1 2026 revenue, which it attributed to an algorithm change by its largest advertising partner that diverted ads to lower-quality auctions at higher costs.

Why it matters

The sharp stock drop and revenue decline have prompted a national shareholders rights firm, Hagens Berman, to investigate claims that ODDITY violated federal securities laws by making false and misleading statements about its AI-driven online platform and failing to disclose issues with its advertising partner that negatively impacted the company's business and financial prospects.

The details

The lawsuit alleges that ODDITY touted its AI-driven online platform as sustaining 'high-growth and attractive margin profile,' but failed to disclose that an algorithm change by its largest advertising partner resulted in the diversion of ODDITY's advertisements to lower-quality auctions at abnormally high costs. This significantly increased ODDITY's customer acquisition costs and negatively affected the company's business and financial outlook.

  • On February 25, 2026, ODDITY announced its Q4 and FY 2025 financial results and revealed the 'dislocation' with its largest advertising partner, which it said started in the second half of 2025.
  • ODDITY quantified the effects of the dislocation, saying that Q1 2026 revenue would decline 30% year-over-year.

The players

ODDITY Tech. Ltd.

A technology company that operates an AI-driven online platform.

Hagens Berman

A national shareholders rights firm investigating claims that ODDITY violated federal securities laws.

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What they’re saying

“We're investigating when ODDITY first knew of the dislocation issue and whether it may have intentionally misled investors about the true strength of its AI growth-driver.”

— Reed Kathrein, Hagens Berman partner

What’s next

The judge in the case will decide on whether to allow the lawsuit to proceed as a class action.

The takeaway

This case highlights the importance of transparency and accurate disclosures by public companies, as well as the potential consequences for investors when a company's financial outlook deteriorates due to undisclosed issues.