Grabar Law Office is investigating claims on behalf of shareholders of Digimarc Corporation (NASDAQ: DMRC). The investigation concerns whether certain officers and directors breached the fiduciary duties they owed to the company.

Digimarc Corporation is a digital watermarking technology company. Digimarc’s digital watermarking technology is deployed in the identification and the authentication of physical and digital items, often at large scale.

Digimarc’s core technology embeds imperceptible digital watermarks into packaging, labels, and digital content to facilitate automated recognition and secure data exchange. The Company derives revenue from three primary channels: (i) subscription and licensing fees for access to its digital platform and related intellectual property; (ii) usage-based fees based on item volumes and scanning activity, including applications in checkout optimization, counterfeit detection, and sustainability initiatives; and (iii) professional services and hardware sales for implementation, integration, and support of its technology.

Digimarc generates revenue primarily through recurring subscription fees for access to its digital identification platform, which enables customers to embed and detect imperceptible digital watermarks in physical and digital media. These subscriptions are typically tied to long-term commercial contracts. Additional revenue comes from usage-based fees that depend on the volume of items processed using Digimarc’s technology, such as product packaging or digital files, and from professional services, including system integration, onboarding, and technical support.

As alleged in a recently filed federal securities fraud class action complaint, Digimarc Corporation (NASDAQ: DMRC), through certain of its officers, made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects including failing 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; (3) that, as a result of the foregoing, the Company’s subscription revenue and annual recurring revenue would be adversely affected; (4) and therefore, that Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

WHAT YOU CAN DO NOW: If you purchased Digimarc Corporation (NASDAQ: DMRC) shares prior to May 3, 2024, and still hold shares today, you are encouraged to contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085.  You can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever.