DoubleVerify Holdings, Inc. (DV) Investigation

DoubleVerify, known for its analytics tools that help advertisers gauge the effectiveness of their spending, has been facing a troubling trend of decelerating growth. While the company reported a 15% year-over-year revenue increase for 2024, its fourth-quarter results fell short of expectations, with revenue of $190.6 million representing only an 11% increase.

The company’s outlook for 2025 has further fueled concerns, with projected revenue growth of just 10%, continuing a multi-year slowdown. This marks a stark contrast to DoubleVerify's previous performance, which saw revenue growth of 36% in both 2021 and 2022, followed by 27% in 2023.

At the heart of the firm’s investigation is the question of whether DoubleVerify made misrepresentations or omissions regarding its analytic tools, including its brand safety score tool for X advertisers. The company faced a significant setback when it was revealed that incorrect data had been displayed for nearly five months, potentially deterring advertisers from investing in the platform.

The fallout from this error became apparent on May 7, 2024, when DoubleVerify reduced its fiscal 2024 revenue guidance. The company explained in April 2024 that its dashboard had incorrectly displayed X’s brand safety rates as low as 70% for nearly five months, when the correct score was actually 99.99%.  This error potentially deterred advertisers from investing in the platform, leading to a pullback in customer spending.  The announcement led to a dramatic 38.5% drop in the company's stock price, closing at $18.78 per share on May 8, 2024.

The situation worsened with DoubleVerify's recent Q4 2024 earnings report delivered on February 28, 2025. During the earnings call, management attributed the decelerating growth to reduced spending from some of its largest customers. Notably, one major client cut back so significantly that DoubleVerify has excluded them entirely from its 2025 guidance. This wasn't an isolated incident, as six of DoubleVerify's big customers purportedly reduced their spending in 2024.

While DoubleVerify has blamed the customers’ reduced spending on company-specific issues, questions about whether the provision of potentially defective analytics could be behind this significant customer exodus. The investigation by Hagens Berman aims to determine if DoubleVerify’s actions constitute a breach of the federal securities laws.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the DV investigation about?

The company’s decelerating growth and loss of major customers raise serious questions about the quality of their services and the potential impact on shareholder value. Our investigation focuses on whether DoubleVerify misrepresented the accuracy and reliability of its analytics tools, particularly the brand safety score for X advertisers.

WHAT SHOULD I DO?

I worked at DV. What should I do?

If you were an employee of DV, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in DV, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any DV investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.