ODD Lawsuit Alleges Material Omissions Regarding Advertising Cost Disruptions - ODDITY TECH LTD. Investors Face Losses Following the Revelation of Financial Model Erosion: SueWallSt

Disclosure Under Scrutiny: Were Risk Warnings Adequate?

NEW YORK , April 23, 2026 /PRNewswire/ -- ODDITY Tech Ltd.'s SEC filings touted a "powerful and rare combination of scale, growth, and profitability" while allegedly omitting specific, known disruptions to the Company's advertising cost structure that were already eroding its financial model. Shareholders who purchased ODDITY Tech Ltd. (NASDAQ: ODD) securities between February 26, 2025 and February 24, 2026 lost up to $14.28 per share when the concealed problems surfaced.

SueWallSt notifies investors in ODDITY Tech Ltd. (NASDAQ: ODD) that a class action has been filed on behalf of shareholders who purchased securities during the Class Period. Find out if you qualify to recover losses from inadequate disclosures . You may also contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com  or (888) SueWallSt.

Shares fell 49.21%, or $14.28 per share, closing at $14.74 on February 25, 2026. The lead plaintiff deadline is May 11, 2026.

What the Company Disclosed

Oddity's 2024 Annual Report on Form 20-F, filed with the SEC on February 25, 2025, described the Company's intent to "sustain our high-growth and attractive margin profile" and highlighted its "asset light model" and "significant cash generation." The filing described Oddity's growth strategy in broad terms, including "growing our user base" and "converting users into customers." Appended to this filing were Sarbanes-Oxley certifications signed by both senior officers attesting that the report contained no untrue statement of material fact and did not omit any material fact necessary to avoid misleading investors.

What the Complaint Challenges as Missing

The securities action contends that Oddity's disclosure language failed to satisfy Item 303 of SEC Regulation S-K, which required the Company to describe "any known trends or uncertainties" reasonably likely to have a material unfavorable impact on revenues or income. Specifically, plaintiffs allege :

• Oddity's largest advertising partner implemented algorithm changes that diverted the Company's ads to lower quality auctions at abnormally high costs
• The Company's selling, general and administrative costs surged from $117.1 million to $158.2 million year-over-year in Q1 2025 alone, a 35% increase that reflected ballooning acquisition spending
• Management "observed that something was different in the second half of 2025" yet continued issuing beat-and-raise guidance through Q3 2025 without disclosing the trend
• Boilerplate language about "growing our user base" obscured the specific, material deterioration in the cost of acquiring each new user

Why Generic Warnings May Not Protect

Item 303 requires companies to disclose specific known trends, not merely acknowledge general risks. As pleaded in the complaint, Oddity's filings spoke in aspirational terms about sustaining growth and profitability while allegedly withholding concrete information about a structural shift in advertising economics that management had already identified internally. The complaint charges that generic forward-looking language cannot substitute for disclosure of a problem that was actively impacting the business.

Speak with an attorney about whether Oddity's disclosures met SEC requirements  or call (888) SueWallSt.

"Generic risk factor language cannot substitute for disclosing specific, known problems that are already affecting a company's operations. Oddity's SEC filings allegedly painted a picture of sustained momentum while omitting a material trend in acquisition costs that management had already observed."  -- Joseph E. Levi, Esq.

LEAD PLAINTIFF DEADLINE: May 11, 2026

Levi & Korsinsky, LLP, Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered for investors.

CONTACT:

SueWallSt

Joseph E. Levi, Esq.

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@SueWallSt.com

Tel: (888) SueWallSt

Fax: (212) 363-7171

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SOURCE SueWallSt.com