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 3, 2024 and February 26, 2025, inclusive (the “Class Period”). Digimarc investors have until July 8, 2025 to file a lead plaintiff motion.

What Happened?

On February 26, 2025, after market hours, Digimarc released its fourth quarter and full year 2024 financial results, reporting a 10% drop in quarterly subscription revenue and a decrease in annual recurring revenue by approximately $2 million. The Company explained that the 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, thereby injuring investors.

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; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.