The lawsuit alleges that, during the Class Period, the Defendants made materially false and misleading statements and failed to disclose material adverse facts about the Company's business, operations, and prospects. The truth emerged after markets closed on February 12, 2025, when Trade Desk issued a press release reporting fourth quarter 2024 revenue of $741 million--below the Company's previously issued guidance of $756 million and analysts' estimates of $759.8 million. On an earnings call held the same day, the Company's CEO admitted that Trade Desk had not yet transitioned all of its clients to Kokai, and was still "maintaining 2 systems, Solimar and Kokai." The CEO further conceded that "Kokai rolled out slower than anticipated," but also "in some cases, the slower Kokai rollout was deliberate." On this news, the price of Trade Desk Class A common stock dropped $40.31 per share, or more than 32%, from a closing price of $122.23 per share on February 12, 2025, to a closing price of $81.92 per share on February 13, 2025.
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