Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Taboola.com Ltd. (“Taboola” or the “Company”) (NASDAQ: TBLA) and reminds investors of the October 20, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company was seeing an increase in low-quality publishers; (2) as a result, the Company would need to take an aggressive approach to exiting these low-quality publisher relationships, impacting earnings; (3) as a result, the value of the Company’s publisher relationships was overstated; and (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.
On August 5, 2026, before the market opened, Taboola reported second quarter 2026 earnings, including revenue of $476.8 million, falling short of previously issued guidance of $492 million to $505 million. The Company also lowered its full-year 2026 outlook, reducing expected revenue by $91 million at the midpoint to a range of $1.93 billion to $1.956 billion and lowering expected gross profit by $10 million at the midpoint to a range of $605 million to $615 million. During the accompanying earnings call, management explained that “[r]evenue was below our guidance” in part because Taboola took “a more aggressive approach in the second quarter by exiting publisher relationships that did not meet our standards for advertiser success.”
On this news, Taboola’s share price fell $1.45, or 27.41%, to close at $3.84 on August 5, 2026, on unusually heavy trading volume.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Taboola’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Taboola.com class action, go to www.faruqilaw.com/TBLA or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Frequently Asked Questions (FAQ) for Investors Regarding the Taboola Securities Class Action Lawsuit:
What is the Taboola securities fraud lawsuit about?
The lawsuit alleges Taboola misled investors about rising low-quality publishers, overstated the value of its publisher relationships, and failed to disclose the earnings impact of exiting those relationships.
Who may be eligible to participate in the lawsuit?
Investors who purchased or acquired Taboola.com Ltd. (NASDAQ: TBLA) securities between May 6, 2026 and August 4, 2026 may be eligible if they suffered losses.
What is a lead plaintiff, and how can I seek appointment?
A lead plaintiff represents the proposed class during the litigation. Eligible investors must file a motion with the court by October 20, 2026. Investors may participate without serving as lead plaintiff.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Taboola securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
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