NEW YORK, NY / ACCESSWIRE / December 18, 2023 / Levi & Korsinsky notifies investors that it has commenced an investigation of Direct Digital Holdings, Inc. ("DDH") (NYSE:DRCT) concerning possible violations of federal securities laws.
On December 11, 2023, White Diamond Research published a report entitled "A Mountain of Evidence Suggests That Much of Direct Digital Holdings Revenue May Be Fake and Is Hiding Its Uncollectible Accounts Receivable - 90%+ Downside". The report from White Diamond alleges that DDH "uses ‘accounts receivable insurance' to hide from investors what its true uncollectible accounts receivable is", which "puts the quality of the revenue in question"; notes that "[DDH] doesn't mention any patents and reports zero R&D expense for its technology", which "suggests that its tech isn't proprietary and isn't improving to keep up with the strong competition in the space"; and asserts that "[DDH] is practically broke, with a reported $5.5M in cash, accounts payable that almost doubled quarter over quarter to $45M, and a sizeable debt of $24M with a 15% interest rate." On this news, DDH's stock price fell 11.31%, to close at $10.90 per share on December 11, 2023. To obtain additional information, go to:
https://zlk.com/pslra-1/direct-digital-holdings-inc-lawsuit-submission-form?prid=60529&wire=1
or contact Joseph E. Levi, Esq. either via email at jlevi@levikorsinsky.com or by telephone at (212)363-7500.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212)363-7500
Fax: (212)363-7171
https://zlk.com/
SOURCE: Levi & Korsinsky, LLP
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