v3.25.2
Commitments and Contingencies
6 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
As of June 30, 2025, apart from the lease agreement discussed below, there were no material changes to our
commitments and contingencies as disclosed in the notes to our consolidated financial statements included in our 2024 10-
K.
Leases
On April 16, 2025, we entered into a non-cancellable office lease agreement in New York, New York that extended the
lease term of an existing space and provided for a new space, both of which end in early 2036. The total future minimum
lease payments are approximately $14.7 million.
Legal Contingencies
Consumer privacy class action - Between February 2, 2023, and March 30, 2023, five individual plaintiffs filed five
separate putative class actions lawsuits against Google, Meta, Criteo and us, alleging generally that we have not adequately
protected consumer privacy and that we communicated consumer information to third parties, including the three co-
defendants. Four of the plaintiffs allege common law intrusion upon seclusion and unjust enrichment claims, as well as
claims under California’s Confidentiality of Medical Information Act, Invasion of Privacy Act, Consumer Legal Remedies Act,
and Unfair Competition Law. One of these four plaintiffs additionally brings a claim under the Electronic Communications
Privacy Act. The fifth plaintiff brings claims for common-law unjust enrichment and violations of New York’s General
Business Law. Four of these cases were originally filed in the United States District Court for the Northern District of
California ("NDCA) (Cases No. 3:23-cv-00501; 3:23-cv-00744; 3:23-cv-00940; and 4:23-cv-01293). One case was originally
filed in the United States District Court for the Southern District of New York (Case No. 1:23-cv-00943); however, that case
was voluntarily dismissed and re-filed in the NDCA (Case No. 3:23-cv-01508). These five matters have been consolidated
and assigned to U.S. District Judge Araceli Martínez-Olguín in the NDCA. The court also set a briefing schedule for filing a
single consolidated complaint, which the plaintiffs filed on May 21, 2023 (Case No. 3:23-cv-00501-AMO; the "NDCA Class
Action Matter"), as well as motions to dismiss and motions to compel arbitration. In addition to the aforementioned claims,
the plaintiffs in the now consolidated matter bring claims under the Illinois Consumer Fraud and Deceptive Business
Practices Act, common law negligence and negligence per se, in each case, pleaded in the alternative. The plaintiffs are
seeking various forms of monetary damages (such as statutory damages, compensatory damages, attorneys’ fees and
disgorgement of profits) as well as injunctive relief. Briefing on the motions to dismiss and motions to compel arbitration was
completed on August 24, 2023.
On October 27, 2023, six plaintiffs filed a class action complaint (Case No. 1:23-cv-24127-BB; the “SDFL Class Action
Matter”) against us in the United States District Court for the Southern District of Florida ("SDFL"). The plaintiffs alleged, on
behalf of the same nationwide class as the NDCA Class Action Matter, substantially the same statutory and common law
violation claims as alleged in that matter as well as claims based on the federal Electronic Communications Privacy Act,
invasion of privacy under California common law and the California constitution, invasion of privacy under New Jersey's
Constitution, and violations of Pennsylvania’s Wiretapping and Electronic Surveillance Control Act, Florida’s Security of
Communications Act, New York’s Civil Rights Law and Stop Hack and Improve Electronic Data Security Act. The plaintiffs in
the SDFL Class Action Matter seek various forms of monetary damages as well as injunctive and other unspecified equitable
relief.
On October 27, 2023, we entered into a proposed settlement agreement with the plaintiffs in the SDFL Class Action
Matter, on behalf of a nationwide settlement class that includes the NDCA Class Action Matter, which provides for a payment
of $13.0 million by us. On October 30, 2023, the plaintiffs in the SDFL Class Action Matter filed a motion and memorandum
in support of preliminary approval of the proposed class action settlement and, on October 31, 2023, the SDFL granted
preliminary approval of the proposed settlement. The proposed settlement is subject to final approval of the court. Members
of the class have the opportunity to opt-out of the class and commence their own actions.
In response to the proposed settlement in the SDFL Class Action Matter, plaintiffs in the NDCA Class Action Matter filed
(i) on November 1, 2023, a motion in the NDCA for an order to require us to cease litigation of, or alternatively file a motion
to stay in, the SDFL Class Action Matter and enjoin us from seeking settlement with counsel other than plaintiffs’ counsel in
the NDCA Class Action Matter; and (ii) on November 2, 2023, a motion in the SDFL for that court to allow them to intervene
and appear in the SDFL action, transfer the SDFL Class Action Matter to the NDCA and reconsider and deny its preliminary
approval of the proposed settlement. The SDFL has issued an order requiring the SDFL plaintiffs to, among other things, file
a response to the NDCA plaintiffs' motion to intervene. Additionally, U.S. District Judge Araceli Martínez-Olguín in the NDCA
issued an order for us to show cause as to why we should not be sanctioned for an alleged failure to provide notification to
the NDCA of the pendency of the SDFL Class Action Matter. We filed our written response to this order on November 8,
2023. The NDCA held a hearing on November 14, 2023, and ordered parties to the litigation to participate in mediation. The
parties participated in mediation on January 10, 2024, and agreed to participate in an additional day of mediation, which
occurred on March 7, 2024.
On December 3, 2024, the SDFL plaintiffs filed a voluntary motion to dismiss, with prejudice, which was approved by
the court on December 4, 2024. On November 25, 2024, we entered into a settlement agreement, with the NDCA plaintiffs
for $25.0 million, subject to approval by the court. On June 12, 2025, the court denied the motion for preliminary approval of
the settlement with prejudice, with leave for the plaintiffs to refile with additional information requested by the court. Based
on the settlement agreement, an estimated probable loss of $25.0 million was recognized within accrued expenses and
other current liabilities on our consolidated balance sheet as of December 31, 2024, and remained accrued as of June 30,
2025. While this amount represents our best judgment of the probable loss based on the information currently available to
us, it is subject to significant judgments and estimates and numerous factors beyond our control, including, without limitation,
final approval of the court. In addition, while it is reasonably possible an incremental loss may have been incurred for the
indemnification of certain parties named in the class action lawsuits, a loss, or a range of loss, is not reasonably estimable.
The results of legal proceedings are inherently uncertain, and upon final resolution of these matters, it is reasonably possible
that the actual loss may differ from our estimate.
Securities class action & derivative lawsuits - On April 22, 2024, Lisa Marie Barsuli, individually and on behalf of all
others similarly situated, filed a class action lawsuit against us and certain of our executive officers in the United States
District Court for the Central District of California (Case No. 2:24-cv-3282). The plaintiffs seek compensatory damages and
equitable relief as well as interest, fees and costs. The complaint alleges violations of Sections 10(b) and 20(a) of the
Exchange Act and Rule 10b-5 promulgated thereunder, and asserts that we and certain of our executive officers failed to
disclose to investors the risk relating to a grocery chain taking actions that impacted acceptance of our discounted pricing for
a subset of prescription drugs from PBMs, whose pricing we promote on our platform (the “grocer issue”), which occurred
late in the first quarter of 2022. As alleged in the complaint, when we disclosed the occurrence of the grocer issue, our stock
price fell, causing investor losses. On July 25, 2024, U.S. District Judge André Birotte Jr. appointed The Kalmanson Family
as the lead plaintiff and approved selection of lead plaintiff's counsel. We filed a motion to dismiss the class action lawsuit on
November 19, 2024. On January 10, 2025, the plaintiffs filed their opposition to our motion to dismiss, and we filed our
response on February 11, 2025.
Additionally, on various dates between May 23, 2024 and November 6, 2024, alleged stockholders Benjamin Solomon
(Case No. 2:24-cv-04301), Joseph Caetano (Case No. 2:24-cv-06993), Colby Mayes (Case No. 2:24-cv-07264), Sharon
Burgs (Case No. 2:24-cv-07281), and Stephen Bushansky (Case No. 2:24-cv-09611) each filed separate derivative lawsuits
in the United States District Court for the Central District of California, in each case, purportedly on behalf of us against
certain of our current and former executive officers and directors. The derivative complaints assert various claims, including
for violations of, and contribution under, the Exchange Act, breach of fiduciary duty, unjust enrichment, abuse of control,
gross mismanagement, corporate waste and violations of insider trading laws. The claims in each of these derivative
lawsuits are based on allegations substantially similar to those in the class action lawsuit described above and also allege
that we failed to maintain adequate internal controls. The plaintiffs in these derivative lawsuits are seeking declaratory relief,
monetary damages, restitution, disgorgement of alleged illegal profits and/or certain governance reforms. On December 20,
2024, plaintiffs in the derivative lawsuits agreed to consolidate the cases and stay the action pending the resolution of the
securities class action's motion to dismiss. On February 20, 2025, the court granted the stipulation and consolidated the
cases under Case No. 2:24-cv-04301-AB-JPR.
On April 23, 2025, the court granted our motion to dismiss the securities class action lawsuit, without prejudice and with
leave to amend.
Consumer state litigations - On May 28, 2024, The Bert and Annette Mullens Foundation filed a lawsuit against us in
Pope County, Arkansas, alleging that we violated an Arkansas statute related to the distribution of health-related discount
cards. Specifically, the statute provides that each discount card must “expressly provide in bold and prominent type that the
discounts are not insurance.” Ark. Code Ann. § 4-106-201(1). Furthermore, the statute provides that each card must
“expressly provide in bold and prominent type on the card or in a statement attached to the card that the consumer has the
right to cancel his or her registration within thirty (30) days from the effective date of the card.” Ark. Code Ann. §
4-106-201(2). The plaintiff alleges that our cards did not comply with these requirements, and sought an injunction and
statutory damages. We filed a motion to dismiss the complaint, which was denied on December 2, 2024. On May 9, 2025,
the Arkansas Attorney General moved to intervene in the case. On May 13, 2025, the plaintiff moved for partial summary
judgment, which we and the Arkansas Attorney General opposed. Furthermore, on June 11, 2024, the Minnesota Teamsters
Service Bureau, also filed a lawsuit against us in Hennepin County, Minnesota, alleging that we violated a Minnesota statute
related to the distribution of health-related discount cards. Specifically, the statute provides that each discount card must
“expressly provide in bold and prominent type that the discounts are not insurance.” Minn. Stat. Ann. § 325F.784, subd. 1(1).
The plaintiff alleges that our cards do not comply with these requirements and also seeks an injunction and statutory
damages. We filed a motion to dismiss the complaint, which was denied on December 17, 2024. On June 10, 2025, the
plaintiff moved to dismiss some of our counterclaims. Discovery is ongoing in both matters.
We intend to vigorously defend against the claims asserted in the securities class action, derivative lawsuits, and
consumer state litigations. We believe we have meritorious defenses to such claims and based upon information presently
known to management, we have not accrued a loss for the securities class action and derivative lawsuits as a loss is not
probable nor reasonably estimable. While it is reasonably possible a loss may have been incurred, we are unable to
estimate a loss or range of loss in these matters. Relating to the consumer state litigations, the estimated probable loss as of
June 30, 2025 was not material and represents our best judgment based on the information currently available to us.
These pending proceedings involve complex questions of fact and law and may require the expenditure of significant
funds and the diversion of other resources to defend. In addition, during the normal course of business, we (including our
directors and officers whom we indemnify) may become subject to, and are presently involved in, legal proceedings, claims
and litigation. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. We have
not accrued for a loss for any other matters as a loss is not probable and a loss, or a range of loss, is not reasonably
estimable. Accruals for loss contingencies are recognized when a loss is probable, and the amount of such loss can be
reasonably estimated. See "Note 5. Accrued Expenses and Other Current Liabilities" for additional information. Loss
recoveries are recognized when a loss has been incurred and the recovery is probable. See "Note 4. Prepaid Expenses and
Other Current Assets" for additional information.
GoodRx as plaintiff in arbitration award - In February 2023, we initiated arbitration against Famulus Health, LLC
(“Famulus”) before the American Arbitration Association in relation to Famulus’ breach of an agreement entered into by
Famulus and us in June 2020, as amended (the “Agreement”). We asserted claims for Famulus' breach of the confidentiality
and exclusivity provisions in the Agreement, seeking to recover damages and injunctive relief. On February 15, 2024, an
arbitration award was rendered, which included a damages award and a permanent injunction (the "Arbitration Award").
Famulus filed a petition to vacate the Arbitration Award on February 21, 2024 in the United States District Court for the
District of South Carolina ("DSC"). We filed a petition to confirm the Arbitration Award on February 22, 2024 in the DSC. In
April 2024, several motions and oppositions were filed, which were consolidated by the DSC on April 12, 2024. On
September 11, 2024, the DSC entered an opinion and order denying Famulus’s motion to vacate the Arbitration Award and
granting our motion to confirm the Arbitration Award as modified by the DSC. On October 11, 2024, we filed an application
for writ of execution in the DSC, which was issued on October 16, 2024. The writ directs a U.S. Marshal of the District of
South Carolina to levy Famulus’s property in execution of our judgment. We cannot make any assurance as to the outcome
of the Arbitration Award or if the Arbitration Award will be collected. Any gain on this matter is considered a gain contingency
and will be recognized in the period in which the Arbitration Award is realized or realizable, pursuant to ASC 450,
Contingencies.