PubMatic, Inc.

On August 11, 2025, after the market closed, PubMatic released its second quarter 2025 financial report. In its report, PubMatic’s Chief Financial Officer, Steven Pantelick, revealed that the Company’s outlook reflects “a reduction in ad spend from one of [its] top DSP partners.” The Company’s Chief Executive Officer, Rajeev Goel, further revealed that a “top DSP buyer” had “shifted a significant number of clients to a new platform that evaluates inventory differently” causing significant headwinds. Goel stated, in response to the inventory valuation change, the Company would “need to do a better job . . . to prioritize across all the hundreds of billions of daily ad impressions that we have, which subset of those impressions that we send to this DSP.”

On this news, PubMatic’s stock price fell $2.23, or 21.1%, to close at $8.34 per share on August 12, 2025, on unusually heavy trading volume.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that a top DSP buyer was shifting a significant number of clients to a new platform which evaluated inventory differently; (2) that, as a result, PubMatic was seeing a reduction in ad spend and revenue from this top DSP buyer; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.