Law Offices of Frank R. Cruz Encourages Digimarc Corporation (DMRC) Investors To Inquire About Securities Fraud Class Action

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased Digimarc Corporation (“Digimarc” or the “Company”) (NASDAQ: DMRC) securities between May 2, 2024 and February 26, 2025, inclusive (the “Class Period”). Digimarc investors have until May 9, 2025 to file a lead plaintiff motion.

IF YOU SUFFERED A LOSS ON YOUR DIGIMARC CORPORATION INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.

You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at info@frankcruzlaw.com, by telephone at (310) 914-5007, or visit our website at www.frankcruzlaw.com.

What Happened?

On February 26, 2025, after the market closed, Digimarc released its fourth quarter and full year 2024 financial results, revealing the Company’s quarterly subscription revenue decreased 10% to $5.0 million (compared to $5.6 million in the previous year) and annual recurring revenue had decreased to $20.0 million (compared to $22.23 million in the previous year). These declines “primarily reflect[ed] a $5.8 million decrease in ARR due to the expiration of a commercial contract in June 2024.”

On this news, Digimarc’s stock price fell $11.65, or 43.1%, to close at $15.39 per share on February 27, 2025, on unusually heavy trading volume.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, 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. Specifically, Defendants failed to disclose to investors: (1) that a large commercial partner would not renew a large contract on the same terms; (2) that, as a result, Digimarc would renegotiate the large commercial contract; (3) that, as a result of the foregoing, the Company’s subscription revenue and annual recurring revenue would be adversely affected; (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.

If you purchased or otherwise acquired Digimarc securities during the Class Period, you may move the Court no later than May 9, 2025 to request appointment as lead plaintiff in this putative class action lawsuit.

Contact Us To Participate or Learn More:

If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us at:

Law Offices of Frank R. Cruz

2121 Avenue of the Stars, Suite 800

Telephone: 310-914-5007

Email: info@frankcruzlaw.com

Visit our website at: www.frankcruzlaw.com

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250311625371/en/

Law Offices of Frank R. Cruz Encourages Digimarc Corporation (DMRC) Investors To Inquire About Securities Fraud Class Action