The legal action follows a tumultuous August 5, 2026, for the New York-based advertising technology firm. Taboola reported second-quarter revenue of $476.8 million, failing to meet its own forecast of $492 million to $505 million. The company simultaneously lowered its full-year revenue outlook by $91 million and reduced expected gross profit by $10 million.

During an earnings call that same morning, Chief Executive Officer Adam Singolda and Chief Financial Officer Stephen Walker attributed the shortfall to a strategic decision to exit publisher relationships deemed low-quality. Following the disclosure, Taboola stock plummeted 27.41%, closing at $3.84 per share. Pomerantz LLP, the firm leading the class action, is currently soliciting inquiries from shareholders who acquired securities during the relevant class period to evaluate potential claims of corporate misconduct.