The Trade Desk Sued by Investor Over AI Ad Tool Rollout Delay

The Trade Desk Inc. concealed timeline issues for its artificial intelligence tool adoption that later contributed to a record single-day plummet in its stock price, a proposed class action on behalf of investors said.

The cloud-based ad-buying platform misled investors about the AI tool in violation of securities law, said the complaint from United Union of Roofers, Waterproofers & Allied Workers Local Union No. 8 WBPA Fund filed Wednesday in the US District Court for the Central District of California.

The Trade Desk launched a generative artificial intelligence tool called Kokai to help customers better gauge advertising spending benefits, the ...