Investors Alert: Faruqi & Faruqi Examines Cardlytics Claims

Author: Addison Perry Updated: 02-07-2025 10:40 AM

Investigating Claims on Behalf of Cardlytics Investors

Faruqi & Faruqi, LLP, a prominent national securities law firm, is reaching out to investors of Cardlytics, Inc. (NASDAQ: CDLX) who have experienced significant losses. If your losses exceed $50,000, you are encouraged to engage with the firm to discuss potential legal actions available to you.

Why Contact a Legal Partner?

In situations where investors face substantial financial setbacks, legal support can provide clarity and potential avenues for recovery. Faruqi & Faruqi partner Josh Wilson invites affected investors to reach out directly for assistance with their claims.

The Allegations Against Cardlytics

The firm is probing allegations that Cardlytics may have violated federal securities laws. Reports suggest that misleading information regarding the company’s operational performance could significantly impact its investors.

Understanding the Misleading Claims

According to reports, the company allegedly failed to disclose crucial information regarding its financial health and operations. Specific claims include: 1. Mismanagement of increasing consumer incentives; 2. Inability to scale revenue commensurately with consumer engagement; 3. Risks associated with declining revenue growth; 4. Misleading statements regarding their operational strategies.

Recent Financial Disclosures

On May 8, the company disclosed that its first quarter revenue increased only 8%, despite a boost in billings of 12%. This disappointing news reflected a substantial increase in consumer incentives. As a result, there was a rapid decline in Cardlytics' stock price—a drop of 36.5% the following day.

Impact of Financial Report

Another significant detail emerged on August 7, when Cardlytics announced a 9% reduction in revenue for the second quarter, leading to a steep decline in its share price. Such volatility highlights the serious implications of the current investigation.

Class Action Timeline for Investors

Investors looking to take action are reminded of the upcoming deadline to serve as lead plaintiff in a potential federal securities class action. If you have been impacted, seeking legal counsel can facilitate your involvement in the proceedings.

Join the Investigation

Faruqi & Faruqi also encourages anyone with relevant information about Cardlytics’ practices to come forward. This includes former employees, shareholders, and whistleblowers. Your input could be invaluable to ongoing investigations.

Next Steps for Affected Investors

For those who are considering options, visiting www.faruqilaw.com/CDLX or calling Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310) is recommended. Engaging early can maximize your potential recovery.

Stay Updated

To follow updates on this situation, investors can check the firm's presence on LinkedIn, X, or Facebook for the latest information and guidance regarding their claims.

Frequently Asked Questions

What should I do if I lost money in Cardlytics?

If you suffered a loss, consider contacting Faruqi & Faruqi for guidance on legal options available to you.

What is the purpose of the class action?

A class action aims to recover losses for all affected investors, allowing them to collectively seek justice.

When is the class action deadline?

Investors are urged to inquire about upcoming deadlines to serve as lead plaintiff.

How can I stay informed about updates?

Follow Faruqi & Faruqi on social media channels for continual updates related to Cardlytics.

Who can be a lead plaintiff?

A lead plaintiff is typically the investor with the largest financial interest who is representative of the class members.

About The Author

Hello, I'm 30-year-old financial writer and expert Addison Perry, and I love to simplify the intricacies of the financial industry. I've committed myself over the years to deciphering the subtleties of investing techniques and economic trends and converting them into doable guidance that anybody can use. My goal with writings and books is to make money interesting and approachable so that readers may take charge of their financial futures.

My enthusiasm to empowerment and education has propelled me through my career in finance. I write because I think that everyone should be able to make educated financial decisions, and I try to provide that. Regardless of experience level with investing, my work is intended to provide insightful analysis and practical advice to enable you to thrive in the always changing financial environment. I appreciate you traveling with me toward success and financial literacy.

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