AppLovin Corporation (APP) Investigation

AppLovin has repeatedly touted AXON 2.0 as “the best and fastest-growing product we’ve ever released.”

The investigation is focused on whether the company may have improperly withheld crucial information from investors about what AXON 2.0 actually does and the manner in which it has driven revenue growth.

By February 26, 2025, AppLovin’s claims about the sources of its growth came under investor scrutiny after Fuzzy Panda Research and Culper Research published adverse research reports about the company, both raising serious concerns about whether AppLovin has been misrepresenting investors about Axon 2.0.

More specifically, Fuzzy Panda’s report, titled “AppLovin (APP) – Formers Allege Ad Fraud; Is DTC Hype Actually ‘Stealing’ Meta’s Data; Illegal Trafficking of Children & Serving Sex Ads to Kids,” which predicts Apple and Google will kick AppLovin out of their app stores and Meta will act quickly to shut it down. Among other things, Fuzzy Panda found:

• “Axon 2.0 is the nexus of a House of Cards built upon tactics that formers and experts refer to as ‘Ad Fraud[;]’”
• “We believe AppLovin has pulled every trick in the book[;]”
• “We’ve been told they are stealing data from Meta in their e-commerce push[;]”
• “We also discovered AppLovin exploiting consumers and their data in ways which are clear violations of Google and Apple’s app store policies[;]” and
• “Our tests on Children’s Devices Uncovered AppLovin Serving Sex Ads to 7- & 12-year-old girls.”

Culper Research’s report, titled “AppLovin Corporation (NASDAQ: APP): Force Feeding Users with Silent Backdoor Installs and Copying Meta’s Homework. Straight to the Principal’s Office, Please,” concludes that “AppLovin has employed AXON 2.0 largely as a promotional tool – a smokescreen to hide the true drivers of its mobile gaming and e-commerce initiatives, neither have much to do with AI.” Culper further found, in part:

• “[W]e believe AppLovin’s recent success in mobile gaming stems from the systematic exploitation of app permissions that enable advertisements themselves to force-feed silent, backdoor app installations onto users’ phones, with just a single click – an event that is often inadvertent thanks to the Company’s notorious UX gimmicks.”
• “As AppLovin is paid largely on a per-install basis, each illicit install translates directly to profit.”

These events wiped out over $13.7 billion of shareholder value on February 26, 2025.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the APP investigation about?

We are concerned that AppLovin may have misled investors about whether the source of its revenues and growth may be attributable to nefarious conduct.

WHAT SHOULD I DO?

I worked at APP. What should I do?

If you were an employee of APP, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in APP, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any APP investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.