NEW YORK, Sept. 01, 2026 (GLOBE NEWSWIRE) -- SueWallSt reminds purchasers of Taboola.com Ltd. (NASDAQ: TBLA) securities between May 6, 2026 and August 4, 2026 that a securities class action is pending in the U.S. District Court for the Southern District of New York. Find out if you could qualify to recover your per-share losses. You may also contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.
TBLA shares fell $1.45, or 27.41%, to close 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. The last day to move for lead plaintiff is October 20, 2026.
The Promise
On May 6, 2026, the Company projected second quarter 2026 revenue of $492 million to $505 million and a full year 2026 outlook with revenue at a midpoint of approximately $2,034 million and gross profit at a midpoint of approximately $620 million. The Company projected that momentum was building, describing results as driven by advertiser success and a raised full-year outlook reflecting accelerated growth.
The Reality
Results revealed a different picture on August 5, 2026. Q2 2026 revenue came in at $476.8 million, below the low end of guidance, and the full year 2026 outlook was reduced to $1,930 million to $1,956 million in revenue and $605 million to $615 million in gross profit. Management attributed the shortfall in part to a more aggressive approach to exiting publisher relationships that did not meet standards for advertiser success, along with a Google policy change affecting the "explore more" product.
Promise vs. Actual: By the Numbers
- Q2 2026 revenue promised: $492 million to $505 million. Actual: $476.8 million.
- Full year 2026 revenue midpoint promised: approximately $2,034 million. Revised: $1,930 million to $1,956 million, a reduction of $91 million at the midpoint.
- Full year 2026 gross profit midpoint promised: approximately $620 million. Revised: $605 million to $615 million, a $10 million reduction at the midpoint.
- Share price potential: a Class Period high of $5.58 on July 9, 2026. Actual post-disclosure share price: $3.84 on August 5, 2026.
"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. The gap here between a raised full-year outlook and a $91 million midpoint guidance reduction weeks later is what the complaint asks the court to examine." -- Joseph E. Levi, Esq.
What the Lawsuit Alleges About the Gap
The complaint alleges that during the Class Period the Company did not disclose that it was seeing an increase in low-quality publishers, that it would need to take an aggressive approach to exiting those relationships in a way that would affect earnings, and that the carrying value of its publisher relationships was therefore overstated. The action claims that, as a result, positive statements about the Company's business, operations, and prospects lacked a reasonable basis.
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Frequently Asked Questions About the TBLA Lawsuit
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 of its publisher network, the value of its publisher relationships, and the basis for its "accelerated growth" and "advertiser success" representations during the Class Period. When the Company reported a Q2 2026 revenue miss and cut full year 2026 guidance by $91 million at the midpoint, 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 a Q2 2026 revenue miss and reduced full year 2026 revenue and gross profit guidance. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.
Q: When did Taboola.com Ltd. allegedly mislead investors? A: The Class Period runs from May 6, 2026 to August 4, 2026. The complaint alleges that corrective disclosures revealed information that caused a significant stock decline.
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.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (888) SueWallSt
Fax: (212) 363-7171
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