Double verify ($ DV) fraudulent growth claims and AI offered traffic scandal -case -tradingView news

Court: SD New York

Case: 1: 25-cv-04332

• DV Investors submitted a claim against double verification to overestimate the effectiveness of its ad verification tools and to hide important risks that are bound by platform integration and fake traffic.
• After a number of income sides and a bot traffic scandal, DV from February 2024 to February 2025 by over 66%.
• DV Investors can Enter this case be notified of possible recovery.

Fall details:

Between November 10, 2023 and February 27, 2025, Doubverify told investors that it was well positioned to spend more for digital ads as advertisers. The company emphasized high activation services with high margins, promoted new AI functions and calmed investors that its tools helped brands to avoid fraud and poor internships.

But internally, Doubverify's verification technology had difficulty filtering out a growing wave of AI-controlled bot traffic, which made its notification data unreliable-especially on open stock exchanges. In the meantime, the advertisers shifted the expenses to “walled gardens” such as Meta, Tiktok and Amazon, where Doubleverify had only a limited reach and were exposed to steep technical and inexpensive hurdles. These problems made it more difficult for Doubleverify to comply with its growth promises.

On February 28, 2024, the company lowered its quarter from the first quarter and quoted a “slow start” and delays with new customers. DV fell by 21.3%. Then, on May 7, 2024, it lowered the year as a whole, which led to a decline of 38.6% when investors reacted to wider customer failures.

The company continued to calm the investors, but on February 27, 2025, it was announced that a large customer had suspended services and that the advertising collar were turned away from the platforms that were twice dependent. DV 36%fell that day. A month later, Adalytics and the Wall Street Journal showed that Doubleverify had charged customers for bot traffic from well -known data centers, which undermined the claims for damages in the core fraud.

From February 2024 to February 2025 ,, DV lost over 66% of its value.

Based on these events, DV The investors submitted a claim against Doubleverify Holdings and accused the company of the following:

• It misleaded investors who led their ability to recognize fake traffic and to provide reliable advertising check.
• There are hidden business risks associated with platform shifts and technological restrictions in their core services.

In view of all representations, investors are of the opinion that the double verification of the skills overrated and the relaxed disclosure of critical weaknesses that have already affected the business have overestimated the disclosure of disclosures.