Regulatory Disclosure Alert: A securities class action alleges Taboola.com Ltd. (NASDAQ: TBLA) carried "publisher relationships" as definite-lived intangible assets and told the SEC and investors that growth was accelerating, without disclosing an alleged buildup of low-quality publishers that would force aggressive exits and a $91 million guidance cut.
NEW YORK, Sept. 23, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Taboola.com Ltd. (NASDAQ: TBLA) that a securities class action has been filed on behalf of shareholders who purchased or acquired securities between May 6, 2026 and August 4, 2026. Submit your information now. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
TBLA shares fell $1.45 per share, or 27.41%, closing at $3.84 on August 5, 2026, on unusually heavy volume, down from a Class Period high of $5.58 reached on July 9, 2026. Full-year 2026 revenue guidance was cut by $91 million at the midpoint to $1,930-$1,956 million, and gross profit guidance was reduced by $10 million to $605-$615 million. Motions for appointment as lead plaintiff must be filed with the Court by October 20, 2026.
What the SEC Filings Stated
The Company's Form 10-Q for the period ended March 31, 2026, filed May 6, 2026, reported "Intangible Assets, Net" and specifically identified "publisher relationships" among its definite-lived intangible assets. The same day, a press release attributed first quarter results to "advertiser success" and described "accelerated growth" supported by second quarter and full year 2026 guidance, including second quarter revenue of $492-$505 million.
Where the Complaint Says Disclosure Fell Short
The complaint challenges those filings and statements as materially misleading, alleging investors were not told about conditions that were already developing inside the publisher network.
- The complaint alleges the Company was experiencing an increase in low-quality publishers that was not disclosed.
- It contends that, as a result, an aggressive approach to exiting those publisher relationships would be required, with an impact on earnings.
- It asserts the reported value of the Company's publisher relationships was overstated.
- It alleges the positive characterizations of "advertiser success" and accelerating growth lacked a reasonable basis.
- Disclosure language indicated durable publisher value while, according to the complaint, headwinds were building, including a Google policy change that deprecated the "explore more" product.
The Claims Asserted
The action asserts violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Section 20(a) against senior officers as alleged control persons, in the United States District Court for the Southern District of New York. Plaintiffs contend the PSLRA safe harbor does not shield the challenged statements because they addressed then-existing facts and conditions.
"Generic risk factor language cannot substitute for disclosing specific, known problems that are alleged to have already been affecting a company's operations. The complaint asserts that Taboola's filings valued publisher relationships without disclosing an alleged deterioration in publisher quality that later required aggressive exits." -- Joseph E. Levi, Esq.
Find out if you might qualify to recover losses or call (212) 363-7500.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the TBLA Lawsuit
Q: What court was the TBLA class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.
Q: What specific misstatements does the TBLA lawsuit allege? A: The complaint alleges Taboola.com Ltd. made materially false or misleading statements regarding the quality and value of its publisher relationships and the basis for its "advertiser success" and accelerated growth representations during the Class Period. When the Company disclosed a second quarter revenue miss, aggressive exits from low-quality publisher relationships, and a $91 million cut to full-year revenue guidance, the stock price declined sharply.
Q: How much did TBLA stock drop? A: Shares fell approximately 27.41%, a decline of $1.45 per share, after the Company disclosed its second quarter 2026 revenue miss and reduced full-year outlook. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.
Q: What do TBLA investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What if I already sold my TBLA shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.
Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
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SOURCE Levi & Korsinsky, LLP
