Integral Ad Science Holding Corp.

On August 3, 2023, after market hours, IAS released its second quarter 2023 financial results, revealing that the growth of its optimization revenue had slowed, citing “maturing Context Control growth” and “slower demand from tech/telco clients.” On this news, IAS’s stock price fell $3.66, or 19.4%, to close at $15.17 per share on August 4, 2023, thereby injuring investors.

Then, on February 27, 2024, after market hours, IAS released its fourth quarter 2023 financial results, missing consensus estimates due to pricing cuts issued to customers across the Company’s measurement and optimization businesses and “more competitive pricing.”

On this news, IAS’s stock price fell $7.09, or 41.5%, to close at $10.01 per share on February 28, 2024, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that IAS was experiencing a new material trend of increased competitive pricing pressures and that, as a result, IAS had been forced to cut prices to compensate for weakening demand and slowing revenue growth; (2) that IAS’s pricing function was no longer “favorable” and IAS could not sustain its pricing and drive price increases; (3) that pricing had become a key differentiator between IAS and its competitor necessary to close major renewals and new deals; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.