Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Taboola.com Ltd. (TBLA)

NEW YORK, Aug. 25, 2026 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Taboola.com Ltd. (“Taboola” or the “Company”) (NASDAQ: TBLA) securities between May 6, 2026 and August 4, 2026, inclusive (the “Class Period”).

The Complaint alleges that Taboola operates a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web and asserts that Taboola works by placing ads on publisher sites, mobile apps, and devices, collectively referred to as digital properties.

The Complaint further alleges that 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 second quarter guidance of $492-$505 million. The Complaint also alleges that the Company also cut its previously issued full year 2026 guidance, reducing expected revenue by $91 million at the midpoint to $1,930-$1,956 million and further cut expected gross profit $10 million at the midpoint to $605-$615 million.
        
The Complaint alleges that 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. The Complaint further alleges that Defendants failed to disclose to investors: (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, the Complaint alleges that before the market opened, Taboola held an earnings call, during which the Company’s Chief Financial Officer Stephen Walker said that “[r]evenue was below our guidance this quarter” 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.” The Complaint also alleges that Company’s Chief Executive Officer Adam Singolda further said that the quarter experienced headwinds due to the “decision to remove low-quality publishers that were not delivering value for advertisers.”

The Complaint further alleges that 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, and that, as a result, Plaintiff and other Class members have suffered significant losses and damages.

Investors who purchased or otherwise acquired shares of TBLA should contact the Firm prior to the October 20, 2026 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.