Direct Digital granted motion to dismiss class action lawsuit by Texas Court

Direct Digital (DRCT) Holdings, and advertising and marketing technology platform operating through its companies Colossus Media, and Orange 142, has been granted a motion to dismiss a shareholder class action lawsuit by the U.S. District Court, Southern District of Texas, Houston Division, subject to potential appeal. The lawsuit alleged false and misleading disclosures made by the Company in its public filings. After reviewing the statements offered by the plaintiff, the Court ruled “…none of the statements constitute either materially false statements or omissions that would lead a rational investor to rely on them.”