Robbins LLP is Investigating Allegations that Digimarc Corporation (DMRC) Misled Investors Regarding its Business Prospects

Robbins LLP informs stockholders that a class action was filed on behalf of persons and entities that purchased or otherwise acquired Digimarc Corporation (NASDAQ: DMRC) securities between May 2, 2024 and February 26, 2025. Digimarc is a digital watermarking technology company.

The Allegations

According to the complaint, during the class period, 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; and (3) that, as a result of the foregoing, the Company’s subscription revenue and annual recurring revenue would be adversely affected. 

The complaint alleges that on February 26, 2025, 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.

What Now: You may be eligible to participate in the class action against Digimarc Corporation. Shareholders who want to serve as lead plaintiff for the class must file their papers with the court by May 9, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.