Oddity Tech Ltd. Class Action Lawsuit – ODD

Introduction to Oddity Tech Ltd. (ODD) Securities Class Action Lawsuit

A securities fraud class action under the Securities Exchange Act, including Sections 10(b) and 20(a) and Rule 10b-5 has been filed against Oddity Tech Ltd. (NASDAQ: ODD) and two of its senior executives on behalf of investors who purchased the company's securities including Class A ordinary shares between February 26, 2025 and February 24, 2026. Investors allege the company misrepresented the strength and sustainability of its digital advertising model while touting consistent revenue growth and strong financial performance. “During this period, an algorithm change by the company’s largest advertising partner was allegedly diverting Oddity’s advertisements to lower quality auctions at abnormally high costs, significantly increasing customer acquisition costs and allegedly undermining the strength, stability, and sustainability of Oddity’s digital operating model. When the truth emerged on February 25, 2026, the stock plummeted nearly 50% in a single day, erasing substantial shareholder value.

Oddity Tech Ltd. (ODD) Securities Lawsuit Case Details

Case Name: Travis Peters v. Oddity Tech Ltd.

Case No.: 1:26-cv-02046

Jurisdiction: U.S. District Court, Southern District of New York

Filed on: March 12, 2026

Oddity Tech Ltd. (ODD) Company Profile

Oddity Tech Ltd., based in Tel Aviv, Israel, is a consumer technology company that builds digital-first brands for the beauty and wellness industries in the U.S. and internationally, and its Class A ordinary shares trade on the NASDAQ under ticker ODD, serving consumers through an artificial intelligence-driven online consumer technology platform using data science, machine learning, and computer vision capabilities across its Il Makiage and SpoiledChild brands.

Oddity Tech Ltd. (ODD) Securities Lawsuit Class Period

February 26, 2025 - February 24, 2026, inclusive.

Investors who purchased or otherwise acquired Oddity securities including Class A ordinary shares on the NASDAQ during the Class Period may be eligible to join the Oddity Tech Ltd. (ODD) class action lawsuit.

Allegations in the Oddity Tech Ltd. (ODD) Securities Class Action Lawsuit

The lawsuit targets Oddity Tech Ltd., Chief Executive Officer Oran Holtzman, and Global Chief Financial Officer Lindsay Drucker Mann for allegedly making materially false and misleading statements about the company's business operations and financial prospects throughout the class period in violation of the Securities Exchange Act. According to the complaint, executives repeatedly emphasized the power and resilience of Oddity’s direct-to-consumer digital model while the company was allegedly experiencing advertising-related issues tied to algorithm changes at its largest advertising partner, which the complaint says increased customer acquisition costs and negatively impacted business and financial prospects.

On February 25, 2025, Holtzman announced that the company had "once again proved the power of online" and delivered 27% net revenue growth, declaring he remained "bullish on ODDITY's future" and that the company had "positioned ourselves to win in the most important growth areas in our industry." Three months later on April 29, 2025, Holtzman stated that first quarter results "exceeded our expectations across all metrics" and allowed the company to "raise our full year outlook," while CFO Lindsay Drucker Mann announced the company was "pleased" with results that "beat our guidance across revenue, gross margin, adjusted EBITDA, and adjusted EPS." This pattern continued through the year. On August 4, 2025, both executives again announced that "momentum continued" with "yet another beat and raise" and expressed confidence in raising the full year outlook. On November 19, 2025, they repeated similar claims about "strong third quarter results" that "once again exceeded our guidance" and gave them "confidence to once again raise our full year outlook."

Throughout this period, investors allege that an algorithm change by Oddity's largest advertising partner was diverting the company's advertisements to lower quality auctions at abnormally high costs, negatively impacting the business and financial prospects that executives were publicly celebrating by driving higher acquisition costs and impairing digital advertising efficiency. The complaint alleges that defendants overstated the overall strength, stability, and sustainability of Oddity's digital operating model and market position while these fundamental problems were undermining the business and omitted material facts about the effect of the advertising partner's algorithm changes.

The Truth Emerges

The truth allegedly began to emerge on February 25, 2026, when Oddity issued a press release announcing its fourth quarter and full year 2025 results. CEO Holtzman disclosed that the company "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," resulting in "significant increases in new user acquisition costs that are not correlated with the market or our historical experience."

CFO Mann further stated that the company had “observed that something was different in the second half of 2025” and announced that, “given the dislocation we are experiencing in acquisition costs, we expect first quarter 2026 revenue to decline approximately 30% year-over-year.” According to the complaint, these disclosures undermined defendants’ prior statements about the strength and sustainability of Oddity’s digital operating model

These revelations cast doubt on the executives' repeated statements throughout the Class Period about the strength of the company's business model and on the confidence they expressed while repeatedly beating guidance and raising full year outlooks by acknowledging a material impact from advertising algorithm changes. Management stated only that they had "observed that something was different in the second half of 2025," without saying when the issue began.

Market Reaction

On February 25, 2026, following the disclosure of the advertising algorithm problems and the 30% expected revenue decline, Oddity's Class A ordinary shares (ticker ODD) on the NASDAQ fell $14.28, or 49.21%, closing at $14.74 per share. The single-day collapse wiped out nearly half the company's market value as investors reacted to the company's disclosure of an advertising dislocation at its largest partner that management said they had observed in the second half of 2025, which the complaint alleges significantly increased customer acquisition costs and undercut the digital model executives had repeatedly praised.

Next Steps

● The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.

● The Court will then consider motion for class certification.

● The Court will later consider a Motion to Dismiss.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.

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Certification of Plaintiff Pursuant to Federal Securities Laws

I, duly certify and say, as to the claims asserted under the federal securities laws, that:

I have reviewed a complaint filed in the action.
I did not purchase the security that is the subject of this action at the direction of plaintiff's counsel or in order to participate in this action.
I am willing to serve as a representative party on behalf of the class, including providing testimony at deposition and trial, if necessary.
My transaction(s) in ODDITY Tech Ltd. which are the subject of this litigation during the class period set forth in the complaint are set forth in the chart attached hereto.
Within the last 3 years,
I have not sought to serve nor have I served as a class representative in any federal securities fraud case. I have sought to serve as a class representative in
I will not accept any payment for serving as a representative party on behalf of the class beyond the Plaintiff's pro rata share of any recovery, except as ordered or approved by the court, including any award for reasonable costs and expenses (including lost wages) directly relating to the representation of the class.

Are you US Citizen?

Yes. I certify under penalty of perjury that the foregoing is true and correct. Executed this No. I certify under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed this

Clear

Signed pursuant to California Civil Code Section 1633.1, et seq. - and the Uniform Electronic Transactions Act as adopted by the various states and territories of the United States.

By your signature above, you confirm that have retained Levi & Korsinsky, LLP to represent you and the shareholder class as a lead plaintiff in the pending class action against ODDITY Tech Ltd. This representation will be on a contingency basis, meaning that Levi & Korsinsky will advance all expenses in the litigation and will only seek compensation and/or reimbursement of expenses if the firm obtains a recovery. Regardless of the result, we will never ask you to directly pay for any attorneys’ fees, expenses, or costs. Should we obtain a favorable result, we may ask the court to award us compensation and reimbursement of expenses to be paid by the defendants or as a portion of any class recovery. In exchange for our representation, you agree to cooperate as our client by providing, for example, relevant documents and deposition testimony, if necessary. During the course of this litigation, we may employ and/or work with other law firms, experts, and third-parties to successfully prosecute this action. If you are not appointed as the lead plaintiff or Levi & Korsinsky is not appointed as lead counsel, we will notify you of such decision at which time this representation will end unless otherwise extended by you and the firm. We look forward to working with you towards a successful resolution of this action.

I have reviewed the complaint linked in paragraph 1