Faruqi & Faruqi Reminds Taboola Investors of Key Deadline

Faruqi & Faruqi, LLP, a leading national securities law firm, has reminded investors of a critical deadline as part of a potential securities class action lawsuit against Taboola.com Ltd. (NASDAQ: TBLA). The firm is urging investors who purchased or acquired securities in the company between May 6, 2026, and August 4, 2026, to contact them to discuss their legal rights.

According to Faruqi & Faruqi, the lawsuit alleges that Taboola and its executives violated federal securities laws by making false and misleading statements. The complaint specifically claims that the company was experiencing an increase in low-quality publishers, which would necessitate an aggressive approach to exiting these relationships. This, the firm argues, would impact earnings and overstate the value of the company's publisher relationships.

On August 5, 2026, Taboola reported second-quarter 2026 earnings, which fell short of previously issued guidance. The company reported revenue of $476.8 million, below the previously issued range of $492 million to $505 million. Additionally, Taboola 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 earnings call, management explained that revenue was below guidance in part because the company had taken a more aggressive approach in the second quarter by exiting publisher relationships that did not meet their standards for advertiser success. This news caused Taboola's share price to drop $1.45, or 27.41%, to close at $3.84 on August 5, 2026, on unusually heavy trading volume.

Faruqi & Faruqi is reminding investors of the October 20, 2026, deadline to seek the role of lead plaintiff in the federal securities class action. The court-appointed lead plaintiff will represent the proposed class during the litigation. Eligible investors must file a motion with the court by this date. Investors may participate without serving as lead plaintiff.

The firm encourages anyone with information regarding Taboola's conduct to contact them, including whistleblowers, former employees, shareholders, and others. Faruqi & Faruqi has recovered hundreds of millions of dollars for investors since its founding in 1995 and is committed to representing the interests of investors in securities litigation.