NEW YORK, NY / ACCESSWIRE / December 28, 2023 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Direct Digital Holdings, Inc. ("DDH" or "the Company") (NYSE:DRCT). Investors who purchased DDH securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/drct.
The investigation concerns whether DDH has violated federal securities laws.
Investigation Details:
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 "White Diamond Report"). The White Diamond Report 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 $1.39 per share, or 11.31%, to close at $10.90 per share on December 11, 2023.
What's Next?
If you are aware of any facts relating to this investigation or purchased DDH securities, you can assist this investigation by visiting the firm's site: bgandg.com/drct. You can also contact Peretz Bronstein or his law clerk and client relations manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC: 332-239-2660.
There is No Cost to You
We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman:
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Nathanson
332-239-2660 | info@bgandg.com
SOURCE: Bronstein, Gewirtz and Grossman, LLC
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