A securities class action has been filed against Taboola.com Ltd. (“Taboola” or the “Company”) and certain of its officers on behalf of persons and entities that purchased or otherwise acquired Taboola securities between May 6, 2026 and August 4, 2026, inclusive (the “Class Period”), and were damaged thereby.
Taboola ordinary shares trade on the Nasdaq under the ticker symbol TBLA.
According to the complaint, Taboola operates a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web.
What Does the Taboola Securities Class Action Allege?
The action, Fortin v. Taboola.com Ltd., et al., Case No. 1:26-cv-07170, was filed on August 21, 2026, in the United States District Court for the Southern District of New York. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.
According to the complaint, during the Class Period, Defendants made materially false and/or misleading statements and failed to disclose material adverse facts concerning Taboola’s business, operations, and prospects. The complaint alleges that:
- Taboola was seeing an increase in low-quality publishers;
- As a result, the Company would need to take an aggressive approach to exiting low-quality publisher relationships, impacting earnings;
- As a result, the value of the Company’s publisher relationships was overstated; and
- Defendants’ positive statements about Taboola’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
The complaint further alleges that, on May 6, 2026, Taboola announced first-quarter 2026 financial results and supported its second-quarter and full-year 2026 guidance while emphasizing advertiser success, data, AI, and distribution.
What Happened to Taboola’s Stock Price?
According to the complaint, before the market opened on August 5, 2026, Taboola reported second-quarter 2026 revenue of $476.8 million, below its previously issued second-quarter revenue guidance of $492 million to $505 million. The complaint also alleges that Taboola reduced its full-year 2026 revenue guidance by $91 million at the midpoint, to $1.930 billion to $1.956 billion, and reduced expected full-year gross profit by $10 million at the midpoint, to $605 million to $615 million.
The complaint alleges that, during Taboola’s August 5, 2026 earnings call, CFO Stephen Walker stated that revenue was below guidance, in part, because the Company took a more aggressive approach to exiting publisher relationships that did not meet its standards for advertiser success. CEO Adam Singolda also discussed the Company’s decision to remove low-quality publishers that were not delivering value for advertisers.
Following these disclosures, the complaint alleges that Taboola’s share price fell $1.45, or 27.41%, to close at $3.84 per share on August 5, 2026, on unusually heavy trading volume.
Review the Taboola-Securities-Class-Action-Complaint
Taboola Investors Who Suffered Losses
Investors who purchased or otherwise acquired Taboola securities during the Class Period and suffered financial losses may complete Kehoe Law Firm’s confidential Stockholder Information Request Form or contact Michael Yarnoff, Esq. for a free, no-obligation evaluation of potential legal claims.
Lead Plaintiff Deadline: October 20, 2026. Investors have until October 20, 2026, to seek appointment as lead plaintiff. Investors do not need to serve as lead plaintiff to be eligible to share in any potential recovery.
Michael Yarnoff, Esq.
(215) 792-6676, Ext. 804
[email protected]
[email protected]
About Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm representing investors and consumers in matters involving securities fraud, corporate misconduct, mergers and acquisitions, antitrust violations, whistleblower claims, data breaches, consumer fraud, employment law violations, and retirement-plan mismanagement. Its attorneys have served as lead or co-lead counsel in major securities cases, recovering more than $10 billion for institutional and individual investors.
There is no cost or obligation to speak with the firm, and there are no upfront fees or litigation costs. We handle class action matters on a contingency-fee basis. Any attorneys’ fees or expenses sought in connection with a recovery are subject to court approval.
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