Leading up to and following Oddity's initial public offering on or around July 19, 2023, Defendants widely portrayed the Company as a disruptor in the cosmetics industry. In particular, Defendants differentiated Oddity from traditional brick-and-mortar retailers by asserting that the Company used, inter alia, proprietary AI technologies to target consumer needs. 

On May 21, 2024, NINGI Research published a report alleging that Oddity “completely misled investors about every critical aspect of its business[.]” In particular, the Ningi Report alleged that it “talked to former employees who told [Ningi] that the [Company's] AI is nothing but a questionnaire”; that Oddity's lauded “repeat purchase rates” are attributable to “customers unknowingly enter[ing] into non-cancelable plans”; and that Ningi had “found hundreds of undisclosed lawsuits filed against ODDITY and its subsidiaries in the US and Israel, frequently alleging unpaid bills and violations of consumer protection laws.” 

On this news, Oddity's share price fell $3.02 per share, or 7.37%, to close at $37.97 per share on May 21, 2024. It continued to decline by an additional $1.30 per share, or 3.42%, over the following two consecutive trading sessions.

The Complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Oddity overstated its AI technology and capabilities, as well as the extent to which this technology drove the Company's sales; (ii) Oddity's repeat purchase rates and revenues were, at least in part, derived from unsustainable and deceptive sales and advertising practices; and (iii) Oddity downplayed the true scope and severity of ongoing civil litigation against the Company and/or its subsidiaries. 

Investors who purchased or acquired Oddity Tech securities between July 19, 2023 and May 20, 2024, may no later than September 17, 2024, seek to be appointed as a lead plaintiff representative of the class.