Investors sue AppLovin over misleading financial claims
- A class action lawsuit has been filed against AppLovin Corporation by Berger Montague PC.
- The lawsuit claims that AppLovin misled investors about its financial growth and the stability of its AXON 2.0 platform.
- Investors are urged to take action by the deadline of May 5, 2025, to be appointed as lead plaintiffs.
In the United States, on March 31, 2025, Berger Montague PC announced the filing of a securities class action lawsuit against AppLovin Corporation, targeting investors who purchased AppLovin securities between May 10, 2023 and February 25, 2025. The lawsuit alleges that AppLovin misled investors regarding its financial growth and the stability of its upcoming AXON 2.0 digital advertising platform, promising advanced AI technologies to improve ad placement in mobile games. This information was called into question when analysts Fuzzy Panda and Culper Research released reports on February 26, 2025, which accused AppLovin of reverse-engineering advertising data from Meta Platforms. A significant decline in AppLovin's stock followed the release of these reports, dropping from $377.06 per share to $331.00 per share, indicating a decrease of 12% in just one day. The deadline for affected investors to seek appointment as lead plaintiffs is May 5, 2025, highlighting the urgency for those who may wish to take action against the company. Berger Montague has a long history of representing both individual and institutional investors in securities class action litigation, asserting itself as a key player since its establishment in 1970. The firm encourages those impacted by the alleged misleading practices of AppLovin to come forward and pursue their rights in seeking restitution for potential losses.