# Taboola Investors Face Oct. 20 Deadline in Securities Class Action

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/29600
Published: 2026-10-10T16:48:02.000Z
Updated: 2026-10-10T16:48:02.000Z
Section: Regulation

> The proposed case alleges Taboola concealed deteriorating publisher quality before weaker second-quarter revenue and a reduced full-year outlook.

Investors who purchased or otherwise acquired Taboola.com Ltd. securities between May 6 and Aug. 4, 2026, have until Oct. 20 to ask a federal court to appoint them as lead plaintiff in a proposed securities class action.

The case, Fortin v. Taboola.com Ltd. et al., was filed Aug. 21 in the U.S. District Court for the Southern District of New York. The defendants are Taboola, CEO Adam Singolda and Stephen Walker.

The complaint alleges that Taboola concealed worsening publisher quality and overstated the value of its publisher relationships. It also alleges that the company later disclosed weaker-than-guided second-quarter revenue and reduced its full-year 2026 outlook.

Taboola reported second-quarter revenue of $476.8 million for the period ended June 30. Its previous guidance called for revenue of $492 million to $505 million.

The company revised its full-year revenue outlook to $1.930 billion to $1.956 billion and its gross-profit outlook to $605 million to $615 million. The changes lowered the respective guidance midpoints by $91 million and $10 million.

Taboola disclosed the quarterly results and outlook changes before the U.S. market opened Aug. 5. The company operates a digital advertising and content-recommendation platform, and its shares trade on Nasdaq under the ticker TBLA.

In the earnings release, Singolda said, “We delivered another quarter beating our ex-TAC Gross Profit and Adjusted EBITDA guidance and are raising our full-year guidance for both metrics.”

The lawsuit alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5. The court has not ruled on the allegations or certified the proposed class.

The Oct. 20 deadline applies to investors seeking lead-plaintiff status. Other investors may remain absent class members without asking to lead the case.