On November 13, 2024, Zeta Global issued a statement in response to a report published by short-seller Culper Research, which alleged deceptive data collection practices and financial misrepresentations. The report claimed Zeta used 'consent farms' and 'two-way contracts' to artificially inflate financial results and gather consumer data under false pretenses.
Zeta Global's preliminary review, conducted with its legal counsel, concluded that the report was 'riddled with misrepresentations, speculative conjecture, and categorically false statements.' The company asserted confidence in its internal accounting processes and controls, stating that its financial statements are accurate and audited by Deloitte, not 'E&Y' as incorrectly cited in the report.
The company further clarified that revenue generated from customer relationships that are also vendors is insignificant, and the total contribution of Apptness and ArcaMax to Zeta’s business is not material, representing less than 3% of year-to-date revenue through Q3 2024 and less than 1% of data assets. Zeta emphasized its commitment to data protection, governance, and privacy oversight, which is regularly audited by partners and clients.
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