AppLovin Corporation (APP) Faces Securities Class Action After Losing Over $14 Billion Of Shareholder Value – Hagens Berman

SAN FRANCISCO - A securities class action lawsuit, captioned Quiero v. AppLovin Corporation, et al., No. 4:25-cv-02294 (N.D. Cal.), has been filed. The suit seeks to represent investors who purchased AppLovin securities between May 10, 2023 and February 25, 2025. The suit follows the publication of two adverse short seller reports on February 26, 2025 that drove the price of AppLovin (NASDAQ: APP) shares sharply lower that day.

Hagens Berman is investigating the possible misconduct and urges investors who purchased AppLovin shares and suffered substantial losses to submit your losses now.

Class Period: May 10, 2023 – Feb. 25, 2025

Lead Plaintiff Deadline: May 5, 2025

Visit: www.hbsslaw.com/investor-fraud/app

Contact the Firm Now: [email protected], 844-916-0895

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.

“We are investigating claims that AppLovin may have misled investors about whether its growth may be attributable to nefarious- rather than to legitimate- conduct,” said Reed Kathrein, the Hagens Berman Partner leading the firm's probe.

If you invested in AppLovin and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the AppLovin case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding AppLovin should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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, call Reed Kathrein at 844-916-0895 or email [email protected].

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About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.