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PubMatic faces securities fraud lawsuit, investors advised to contact Pomerantz LLP.
ByAinvest
Saturday, Sep 13, 2025 11:07 am ET2min read
• Class action lawsuit filed against PubMatic, Inc. • Securities fraud and unlawful business practices alleged • Investors must contact Danielle Peyton by Oct 20, 2025 • PubMatic financial results announced on Aug 11, 2025 • Digital data not mentioned in the article as relevant to the lawsuit.
PubMatic, Inc. has filed a comprehensive antitrust lawsuit against Google, alleging the tech giant's monopolistic conduct caused substantial financial harm to the advertising exchange platform. The lawsuit, filed as Case No. 1:25-cv-1482 in the U.S. District Court for the Eastern District of Virginia, seeks monetary damages and injunctive relief following a federal court's determination that Google illegally monopolized critical digital advertising markets [1].According to the 85-page complaint, PubMatic contends that Google's anticompetitive behavior severely limited the company's ability to compete in markets it helped create. PubMatic's co-founder and CEO, Rajeev Goel, stated, "Google's systematic abuse of its vast resources and immense power has harmed our business and distorted a marketplace that should have rewarded innovation and fueled transparency and competition" [1].
The complaint details how PubMatic transformed digital advertising through breakthrough technologies, including pioneering real-time bidding in 2008. PubMatic describes its mission as providing publishers with the ability to manage and optimize every impression, increase revenue, and gain unprecedented visibility and control over their inventory [1].
Google's dominance is alleged to have been built through strategic acquisitions rather than innovation. The complaint notes that Google paid $3.1 billion for DoubleClick in 2008, significantly above its internal valuation of $1.8-2.2 billion. Internal Google documents reveal the strategic motivation behind the overpayment [1].
Google's implementation of policies like "First Look" and "Last Look" gave its exchange unfair priority over competitors. The complaint also alleges that Google operated a covert "Sell-Side Dynamic Revenue Share" program that manipulated auction outcomes, allowing Google's exchange to adjust its advertisers' bids to exceed the winning bid by just one cent [1].
PubMatic experienced direct financial harm from Google's systematic bid reduction program, Project Poirot. The complaint states that PubMatic suffered a decline in spending from DV360 of at least 30% following the introduction of Project Poirot, depriving PubMatic of millions of dollars of additional revenue [1].
The lawsuit also alleges that Google actively misled PubMatic and its customers about the causes of declining performance. When PubMatic contacted Google in August 2017 about reduced DV360 spending, Google offered a vague response that the decline was due to filtration by Google's 'AdSpam team' [1].
Google's 2019 implementation of Unified Pricing Rules represented another anticompetitive measure, which prohibited publishers using DFP from setting higher floor prices for AdX than for other exchanges [1].
The complaint documents extensive harm to PubMatic's business. Between November 2015 and November 2016, PubMatic was forced to reduce its workforce by more than 40%, and its revenue declined by approximately 8%. From 2017 to 2018, PubMatic's revenue declined by almost 20% [1].
In addition to the antitrust lawsuit, PubMatic announced its financial results on August 11, 2025, which showed a significant decline in revenue and profitability. The company's stock price has also been volatile due to the ongoing legal battle .
Investors are advised to contact Danielle Peyton by October 20, 2025, for more information regarding the class action lawsuit against PubMatic, Inc. .
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