Leaders of The Trade Desk Inc. improperly hyped the prospects of a new algorithm for digital advertising despite sluggish uptake and sold nearly $500 million worth of stock while prices were inflated, an investor alleges.
The harm to the company includes a $272 million overpayment for $1.1 billion in stock repurchases, damage to its reputation and goodwill, and its legal defense costs and exposure to liability in a related class action, Ahmed Ibrahim says. He filed the shareholder derivative suit on behalf of Trade Desk on Oct. 3 in the US District Court for the District of Nevada.
The derivative ...
Learn more about Bloomberg Law or Log In to keep reading:
Learn About Bloomberg Law
AI-powered legal analytics, workflow tools and premium legal & business news.
Already a subscriber?
Log in to keep reading or access research tools.