Pomerantz Law Firm Announces the Filing of a Class Action Against ODDITY Tech Ltd. and Certain Officers - ODD

NEW YORK, April 2, 2026 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against ODDITY Tech Ltd. ("Oddity" or the "Company") (NASDAQ: ODD) and certain officers. The class action, filed in the United States District Court for the Southern District of New York, and docketed under 26-cv-02046, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Oddity securities between February 26, 2025 and February 24, 2026, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are an investor who purchased or otherwise acquired Oddity securities during the Class Period, you have until May 11, 2026, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

[Click here for information about joining the class action]

Oddity is a consumer technology company that builds digital-first brands for the beauty and wellness industries in the U.S. and internationally. The Company serves consumers through its purported artificial intelligence-driven online platform, using data science, machine learning, and computer vision capabilities to identify consumer needs and develop solutions in the form of beauty, wellness, and technology products.

Oddity relies heavily on advertising partners to support its sales growth. As such, the Company's revenue and customer acquisition costs are directly impacted by its advertising partners' algorithms, which utilize user behavior, demographic, and interest-related data to facilitate the Company's exposure to online advertising spaces via auctions and, accordingly, online consumer traffic.

The quality of a company's ad auction generally correlates favorably with a company's customer acquisition costs. A high-quality ad auction will generally result in potential customers seeing more relevant, engaging and prominently placed ads, resulting in lower costs per click ("CPC") and higher click-through ("CT") rates. Conversely, lower-quality ad auctions will yield less relevant and poorly placed ads, leading to higher CPC and lower CT rates. As such, higher-quality ad auctions tend to result in lower customer acquisition costs, whereas lower-quality ad auctions tend to increase customer acquisition costs.

The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) due to an algorithm change by Oddity's largest advertising partner, Oddity's advertisements were being diverted to lower quality auctions at abnormally high costs; (ii) the foregoing significantly increased Oddity's customer acquisition costs, thereby negatively impacting Oddity's business and financial prospects; (iii) accordingly, Defendants overstated the overall strength, stability, and sustainability of Oddity's digital operating model and/or market position; and (iv) as a result, Defendants' public statements were materially false and misleading at all relevant times.

The truth began to emerge on February 25, 2026, when Oddity issued a press release "announc[ing] its financial results for the fourth quarter and full year ended December 31, 2025." In the press release, Oddity's Chief Executive Officer, Defendant Oran Holtzman, said that "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", which "result[ed] in significant increases in new user acquisition costs that are not correlated with the market or our historical experience." 

In the same press release, Oddity's Global Chief Financial Officer, Defendant Lindsay Drucker Mann, said that:

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. We plan to issue our financial outlook for FY 2026 in the next few months when we have more visibility.

On this news, Oddity's Class A ordinary share price fell $14.28 per share, or 49.21%, to close at $14.74 per share on February 25, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.

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CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980 

SOURCE Pomerantz LLP