ODD Lawsuit Alleges Concealment of Significant Algorithm Changes at Advertising Partner - ODDITY TECH LTD. Investors Face Losses Amid 49% Share Price Collapse: SueWallSt
Key Dates and Disclosure Events Shareholders Need to Know
NEW YORK, April 30, 2026 /PRNewswire/ -- SueWallSt encourages investors who suffered losses in ODDITY Tech Ltd. (NASDAQ: ODD) to contact the firm. Those who purchased ODD securities between February 26, 2025 and February 24, 2026 may be entitled to recover damages. Find out if you are eligible to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.
ODD shares lost $14.28 per share, a 49.21% single-day collapse, after Oddity revealed on February 25, 2026 that algorithm changes at its largest advertising partner had been diverting ads to lower quality auctions at abnormally high costs. The CFO projected Q1 2026 revenue would decline approximately 30% year-over-year.
February 25, 2025 — The Bullish Baseline Is Set
Oddity reported Q4 and full year 2024 results, with management touting 27% annual net revenue growth and describing the direct-to-consumer model as proof of "the power of online." The Company filed its 2024 Annual Report, accompanied by Sarbanes-Oxley certifications from both officers attesting the filing contained no untrue statements of material fact.
April 29, 2025 — First Raise, First Quarter Beat
Oddity reported Q1 2025 results that management said "exceeded our expectations across all metrics." Guidance was raised for the full year. Selling, general, and administrative costs surged to approximately $158.2 million, up from $117.1 million in the prior-year quarter. The lawsuit contends that the cost escalation reflected the ad auction dislocation already underway.
August 4, 2025 — Second Raise, Costs Continue Climbing
The Company reported Q2 2025 results, announcing "yet another beat and raise." SG&A costs reached approximately $117.3 million for the quarter versus $86.1 million a year earlier. Full year guidance was raised again. As alleged, management characterized future revenue as "driven mostly by a high visibility backlog of repeat orders" without disclosing the advertising disruption.
November 19, 2025 — Third Raise, Disruption Allegedly Already Observed
Oddity reported Q3 2025 results, once more raising guidance. SG&A costs hit approximately $88.5 million for the quarter compared to $63.7 million in Q3 2024. The CFO later acknowledged on the February 2026 earnings call that the Company had "observed that something was different in the second half of 2025." The securities action alleges this admission confirms the disruption was known during the period when guidance was being raised.
Timeline of Alleged Disclosure Failures
- Q1 2025: SG&A costs jumped 35% year-over-year while management described results as "outstanding" and raised guidance
- Q2 2025: SG&A costs increased 36% year-over-year; management cited "high visibility" on future revenue without addressing cost pressures
- Second half of 2025: The CFO later admitted the Company "observed that something was different" during this period
- Q3 2025: SG&A costs rose 39% year-over-year; guidance was raised a third time with no mention of the advertising dislocation
- February 25, 2026: The truth emerged; ODD shares lost nearly half their value in a single session
Submit your claim before the deadline or call (888) SueWallSt.
"Timely disclosure of material developments is fundamental to fair and efficient markets. The quarterly pattern of rising acquisition costs paired with repeated guidance raises, followed by the admission that management observed something was different months earlier, presents serious questions for ODD shareholders." — Joseph E. Levi, Esq.
ABOUT THE FIRM — For over two decades, Levi & Korsinsky has represented shareholders in securities class actions. Ranked in ISS Top 50 for seven consecutive years. Those wishing to serve as lead plaintiff must act by May 11, 2026.
CONTACT:
SueWallSt
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (888) SueWallSt
Fax: (212) 363-7171
SOURCE SueWallSt.com
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