NEW YORK, Oct. 12, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP reminds purchasers of Taboola.com Ltd. (NASDAQ: TBLA) securities of a pending securities class action brought on behalf of investors who acquired shares between May 6, 2026 and August 4, 2026. Find out if you might qualify for recovery. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
TBLA closed at $3.84 on August 5, 2026, down $1.45 per share, a one-day decline of 27.41% on unusually heavy volume. Second quarter revenue came in at $476.8 million against guidance of $492 to $505 million, and full year 2026 revenue guidance was cut by $91 million at the midpoint. Investors have until October 20, 2026 to seek lead plaintiff status.
Supply Quality Optimization and the Publisher Network
Taboola places advertisements across publisher websites, mobile apps, and connected devices. The action contends that during the class period the Company was experiencing an increase in low-quality publishers whose inventory did not meet advertiser performance standards, and that removing those publishers would impact earnings. On August 5, 2026, management stated that revenue fell below guidance in part because the Company took "a more aggressive approach in the second quarter by exiting publisher relationships that did not meet our standards for advertiser success," and described a second headwind from a Google policy change that deprecated the "explore more" product.
Alleged Operational Impact by the Numbers
- Q2 2026 revenue of $476.8 million, below the $492 to $505 million guidance range
- Full year 2026 revenue outlook reduced to $1,930 to $1,956 million, a $91 million midpoint cut
- Full year 2026 gross profit outlook reduced to $605 to $615 million, a $10 million midpoint cut
- Q2 revenue growth of 2.4% year over year, down sharply from 9.1% growth reported for Q1 2026
- Class period high of $5.58 per share on July 9, 2026, versus $3.84 after the August 5 disclosure
What the Action Claims About the Gap
As pleaded, positive class period statements about advertiser success and accelerated growth lacked a reasonable basis because the deterioration in publisher supply quality, and the earnings impact of exiting those relationships, were not disclosed to shareholders.
"The complaint raises serious questions about whether investors were told that the quality of Taboola's publisher network was deteriorating in a way that would require exits with a direct impact on revenue," said Joseph E. Levi, Esq. "Operational decisions of that magnitude are the kind of information shareholders may consider material."
Submit your information now or call (212) 363-7500.
WHY LEVI & KORSINSKY — Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors. Investors who suffered losses have until October 20, 2026 to seek appointment as lead plaintiff.
Frequently Asked Questions About the TBLA Lawsuit
Q: What is the TBLA lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is October 20, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.
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, a $91 million midpoint cut to full year revenue guidance, and the aggressive exit of low-quality publisher relationships. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.
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 advertiser success and accelerated growth representations during the Class Period. When the Q2 2026 shortfall and guidance reduction were disclosed, the stock price declined sharply.
Q: What court was the TBLA class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.
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 documents do I need to to submit my information? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.
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: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.
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.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
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