Pomerantz Law Firm Files Class Action Against ODDITY Tech Ltd.

Lawsuit alleges company misled investors about rising customer acquisition costs

Apr. 7, 2026 at 8:15pm

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A photorealistic studio still-life photograph featuring a shattered chrome piggy bank on a clean white background, conceptually representing the financial losses caused by the alleged securities fraud.The shattered remains of a piggy bank symbolize the financial losses suffered by ODDITY shareholders due to the alleged securities fraud.NYC Today

Pomerantz LLP has filed a class action lawsuit against ODDITY Tech Ltd. (NASDAQ: ODD) and certain officers, alleging the company made materially false and misleading statements about its business, operations, and prospects. The lawsuit claims ODDITY failed to disclose that changes to its largest advertising partner's algorithm led to higher customer acquisition costs, negatively impacting the company's financial performance.

Why it matters

The lawsuit highlights the risks technology companies face when relying heavily on advertising partners and algorithms to drive customer growth. ODDITY's struggles with rising acquisition costs could signal broader challenges in the digital advertising landscape that impact other consumer tech firms.

The details

The class action, filed in the U.S. District Court for the Southern District of New York, alleges ODDITY misled investors about the impact of changes to its largest advertising partner's algorithm. The lawsuit claims these algorithm changes diverted ODDITY's ads to lower-quality auctions at higher costs, significantly increasing its customer acquisition expenses and negatively affecting its business and financial prospects. The lawsuit seeks to recover damages caused by the defendants' alleged violations of federal securities laws.

  • The class period runs from February 26, 2025 to February 24, 2026.
  • Investors have until May 11, 2026 to seek lead plaintiff status.

The players

ODDITY Tech Ltd.

A consumer technology company that builds digital-first brands for the beauty and wellness industries.

Oran Holtzman

ODDITY's Chief Executive Officer.

Lindsay Drucker Mann

ODDITY's Global Chief Financial Officer.

Pomerantz LLP

A law firm acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation.

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What they’re saying

“we 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”

— Oran Holtzman, Chief Executive Officer, ODDITY Tech Ltd.

“Given the dislocation we are experiencing in acquisition costs, we expect first quarter 2026 revenue to decline approximately 30% year-over-year, but we hope to see material improvement in the second half of 2026.”

— Lindsay Drucker Mann, Global Chief Financial Officer, ODDITY Tech Ltd.

What’s next

The judge will decide by May 11, 2026 whether to appoint a lead plaintiff for the class action lawsuit.

The takeaway

This case highlights the risks technology companies face when relying heavily on advertising algorithms and partners to drive customer growth. ODDITY's struggles with rising acquisition costs could signal broader challenges in the digital advertising landscape that impact other consumer tech firms.