AppLovin Corporation (APP) Securities Class Action

The complaint alleges that AppLovin made false and misleading statements while failing to disclose crucial information about its AXON 2.0 digital ad platform, which the company has touted as “the best and fastest-growing product we’ve ever released.”

Specifically, the suit alleges that AppLovin provided investors with material information about its financial growth and stability, including its confidence in its launch of the AXON 2.0 digital ad platform, which the company has said uses “cutting-edge AI technologies” to more efficiently match advertisements to mobile games and to expand into web-based marketing and e-commerce.

Investors learned the truth on February 26, 2025, when short sellers Fuzzy Panda Research and Culper Research published adverse research reports about the company. Both raised serious concerns about whether AppLovin has been misleading investors about AXON 2.0.

Fuzzy Panda said that it “discovered AppLovin exploiting consumers and their data in ways which are clear violations of Google and Apple’s app store policies” and predicted that Apple and Google will kick AppLovin out of their app stores. Fuzzy Panda also claimed that AppLovin was “stealing data from Meta in their e-commerce push” and predicted that Meta will act quickly to shut it down.

Culper Research said “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 also said “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” and that “each illicit install translates directly to profit.”

These events drove the price of AppLovin shares down $46.06 (-12%), wiping out over $14 billion of shareholder value in a single trading day.

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.