Direct Digital Holdings Inc. misled investors about the impact of Google ‘s phaseout of third-party cookies on the advertising company’s business and revenue, propping up its stock price, according to a new lawsuit.
Direct Digital failed to disclose that its “alternatives to third-party cookies, including planned investments in AI and machine learning to build on first-party data sources, would not be viable alternatives to third-party cookies and similar tracking technologies,” shareholder Terry Monsky says in the proposed class action. He filed his complaint Thursday in the US District Court for the Southern District of Texas.
Alphabet Inc.’s Google unit announced …