LOS ANGELES--(BUSINESS WIRE)-- Glancy Prongay & Murray LLP (“GPM”), announces that it has filed a class action lawsuit in the United States District Court for the Southern District of New York, captioned Mayer v. Digimarc Corporation, et al., Case No. 1:25-cv-01963, on behalf of persons and entities that purchased or otherwise acquired Digimarc Corporation (“Digimarc” or the “Company”) (NASDAQ: DMRC) securities between May 2, 2024 and February 26, 2025, inclusive (the “Class Period”). Plaintiff pursues claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”).

Investors are hereby notified that they have 60 days from the date of this notice to move the Court to serve as lead plaintiff in this action.

IF YOU SUFFERED A LOSS ON YOUR DIGIMARC INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS.

What Happened?

On February 26, 2025, after the market closed, Digimarc released its fourth quarter and full year 2024 financial results, revealing the Company’s quarterly subscription revenue decreased 10% to $5.0 million (compared to $5.6 million in the previous year) and annual recurring revenue had decreased to $20.0 million (compared to $22.23 million in the previous year). These declines “primarily reflect[ed] a $5.8 million decrease in ARR due to the expiration of a commercial contract in June 2024.”

On this news, Digimarc’s stock price fell $11.65, or 43.1%, to close at $15.39 per share on February 27, 2025, on unusually heavy trading volume.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that a large commercial partner would not renew a large contract on the same terms; (2) that, as a result, Digimarc would renegotiate the large commercial contract; (3) that, as a result of the foregoing, the Company’s subscription revenue and annual recurring revenue would be adversely affected; (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

If you purchased or otherwise acquired Digimarc securities during the Class Period, you may move the Court no later than 60 days from the date of this notice to ask the Court to appoint you as lead plaintiff.

Contact Us To Participate or Learn More:

If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: shareholders@glancylaw.com
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.

If you inquire by email, please include your mailing address, telephone number and number of shares purchased.

To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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