Forensic Review Finds Zeta Global Practices Sound and Financial Statements Accurate
21 November 2024 - 7:00AM
Business Wire
Internal and External Reviews Show Company Does Not Engage in
Misleading Practices
Confirms “Report” Claims are False
Zeta Global (NYSE: ZETA), the AI-Powered Marketing Cloud, today
announced a previously completed forensic review found its
practices sound and financial statements accurate, debunking claims
made about Zeta Global in a recently published false and misleading
“report.”
In response to the false and misleading allegations in that
“report,” Zeta is now disclosing the forensic review conducted in
2022 and 2023.
The Audit Committee of Zeta’s Board of Directors oversaw the
review after learning of a federal investigation into a company,
Kubient, Inc., with which Zeta did business before Zeta went public
in 2021. Zeta retained Latham & Watkins LLP and external
forensic accountants to review contractual arrangements in which
Zeta acts as a vendor and a customer.
The review supported Zeta’s conclusion that its financial
statements are accurate and fairly presented Zeta’s financial
condition and operating results in all material respects. The
review also supported Zeta’s conclusion that its internal controls
over financial reporting are effective.
“We are releasing this news today because of the recently
released false claims masquerading as ‘facts’ about our Company,”
said David Steinberg, Co-Founder, Chairman, and CEO of Zeta.
“Publishing false claims hurts reputable companies like ours and
only benefits manipulative traders who seek to exploit the impact
their false claims have on share price.”
“We asked Latham and external forensic accountants to scrutinize
how Zeta operates and books its business,” said Robert Niehaus,
Chair of Zeta’s Audit Committee. “Zeta’s findings based on their
work should give any objective person confidence in the integrity
of Zeta’s operations, controls, processes, and financial
statements.”
PCAOB rules required disclosure of critical audit matters (CAM)
for the first time in Zeta’s annual report on Form 10-K for the
fiscal year ended December 31, 2023. CAM disclosure is intended to
provide information arising from the financial statement audit
process. CAM disclosures are common for publicly traded
companies.
As the PCAOB has stated, and contrary to insinuations in the
“report,” CAM disclosure does not reflect negatively on the
company, does not indicate control deficiencies, and does not alter
the auditor’s opinion on the financial statements. Moreover,
“revenue from customer contracts is the number one most common CAM
topic among all public companies,” according to a January 2024
survey by Audit Analytics.
“More than a year ago, Zeta disclosed its cooperation with an
investigation by federal authorities into Kubient,” Steinberg
added. “We never did a material amount of business with that
company, and we ended that relationship before our IPO three years
ago. Zeta Global will continue to create long-term shareholder
value and demonstrate its strength and the resilience our business
model. I have asked our counsel to review all appropriate legal
remedies we may take against the publisher of this bogus
‘report.’”
About Zeta
Zeta Global (NYSE: ZETA) is the AI-Powered Marketing Cloud that
leverages advanced artificial intelligence (AI) and trillions of
consumer signals to make it easier for marketers to acquire, grow,
and retain customers more efficiently. Through the Zeta Marketing
Platform (ZMP), our vision is to make sophisticated marketing
simple by unifying identity, intelligence, and omnichannel
activation into a single platform – powered by one of the
industry’s largest proprietary databases and AI. Our enterprise
customers across multiple verticals are empowered to personalize
experiences with consumers at an individual level across every
channel, delivering better results for marketing programs. Zeta was
founded in 2007 by David A. Steinberg and John Sculley and is
headquartered in New York City with offices around the world. To
learn more, go to www.zetaglobal.com.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The Company intends such forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995 and includes this statement for purposes of complying
with these safe harbor provisions. Any statements made in this
press release that are not statements of historical fact, including
statements about our beliefs and expectations, are forward-looking
statements and should be evaluated as such. These statements often
include words such as “anticipate,” “expect,” “suggests,” “plan,”
“believe,” “intend,” “estimates,” “targets,” “projects,” “should,”
“could,” “would,” “may,” “will,” “forecast” and other similar
expressions. We base these forward-looking statements on our
current expectations, plans and assumptions that we have made in
light of our experience in the industry, as well as our perceptions
of historical trends, current conditions, expected future
developments and other factors we believe are appropriate under the
circumstances at such time. Although we believe that these
forward-looking statements are based on reasonable assumptions at
the time they are made, you should be aware that many factors could
affect our business, results of operations and financial condition
and could cause actual results to differ materially from those
expressed in the forward-looking statements. These statements are
not guarantees of future performance or results. The
forward-looking statements are subject to and involve risks,
uncertainties and assumptions, and you should not place undue
reliance on these forward-looking statements. These cautionary
statements should not be construed by you to be exhaustive and are
made only as of the date of this press release. We undertake no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20241120459592/en/
Investor Relations Madison Serras ir@zetaglobal.com
Press Candace Dean press@zetaglobal.com
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