02:36 PM EST, 11/13/2024 (MT Newswires) -- Zeta Global ( ZETA ) shares tumbled over 21% in recent trading Wednesday after Culper Research disclosed a short position, saying the company faces "potentially devastating regulatory action" over certain practices.

The short seller alleged the marketing technology company "has formed 'two-way' contracts with third party consent farms wherein the company simultaneously acts as both a supplier and a buyer of consumer data, not only allowing the company to flatter reported revenue growth, but raising round tripping concerns."

Culper also accused Zeta of having "sham websites" that trick consumers to hand over their data to Zeta "under false pretenses, baited by job applications, stimulus money, or other rewards that simply do not exist."

The short seller said such actions cast a doubt on the integrity of Zeta's data collection and reported financials.

Zeta did not immediately reply to MT Newswires' request for comment.

Price: 22.16, Change: -6.07, Percent Change: -21.49