Nielsen Holdings plc (NLSN) Accused of Disregarding the True Risks of Privacy Related Regulations

According to the class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between February 8, 2018 and July 25, 2018.,  Nielsen Holdings plc (NLSN) repeatedly assured investors that its measurement and analytics services were viable and strong, and that the enactment of the European General Data Protection Regulation ("GDPR") would not impact its business. Despite these representations, on July 26, 2018, Nielsen announced that it had significantly missed public net income and free cash flow estimates by a wide margin, and reduced previously reaffirmed 2018 financial guidance. Nielsen attributed the shortfall to the GDPR and changes in the consumer data privacy landscape, which caused its clients to struggle to ensure compliance with targeting and data usage rights. On this news, Nielsen's stock plunged more than 25% to close at $22.11 per share on July 26, 2018.