On April 17, 2025, Labaton Keller Sucharow LLP announced the filing of a securities class action lawsuit against AppLovin Corporation and several of its executives. The lawsuit, initiated on behalf of the Wayne County Employees’ Retirement System, targets claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as SEC Rule 10b-5. The suit seeks to represent all individuals and entities that acquired AppLovin securities between May 10, 2023, and March 26, 2025.

2. Previous Legal Actions

This latest complaint expands upon two prior lawsuits filed against AppLovin: *Quiero v. AppLovin Corporation* and *Brownback v. AppLovin Corporation*. The *Quiero* action was filed on March 5, 2025, while the *Brownback* suit followed shortly on March 24, 2025. Both earlier actions were initiated on behalf of investors who acquired AppLovin securities during a slightly shorter period, ending on February 25, 2025. The newly filed complaint extends this period by about a month and introduces additional allegations regarding the company’s deceptive practices.

3. Allegations of Deceptive Practices

The lawsuit outlines several serious allegations against AppLovin, claiming that the company misled investors by failing to disclose:

Unsustainable Revenue Growth: It is alleged that AppLovin systematically exploited fraudulent advertising practices, such as click spoofing and backdoor installations, which undermined the sustainability of its revenue and profit growth.

Misleading Risk Disclosures: Claims regarding potential breaches of service terms with third-party platforms were reportedly characterized as mere possibilities, despite already being realized threats.

False Attribution of Growth: AppLovin allegedly misrepresented the growth in its revenue as a result of advancements in its AXON 2.0 digital advertising platform and the implementation of "cutting-edge AI technologies," rather than acknowledging the underlying fraudulent practices.

Materially Misleading Statements: The lawsuit claims that public statements made by AppLovin about its business operations and future prospects were materially false, leading investors to misjudge the company's true financial health.

4. Stock Price Impact

The allegations and subsequent reports have had a significant impact on AppLovin’s stock performance. Following the publication of reports from Culper Research and Fuzzy Panda Research on February 26, 2025, which detailed the company's questionable practices, AppLovin’s stock dropped by 12.2%, closing at $331.00 per share. A further decline of 20.1% occurred after Muddy Waters Research released additional findings on March 26, 2025, which highlighted violations of third-party data usage. The stock closed at $261.70 per share on March 27, 2025.

5. Next Steps for Affected Investors

Affected investors who purchased AppLovin securities during the class period may be eligible to seek appointment as Lead Plaintiff in this lawsuit. A motion must be filed with the U.S. District Court for the Northern District of California by May 5, 2025. Being appointed as Lead Plaintiff allows individuals to act on behalf of all affected shareholders, though it is not a prerequisite for participating in any potential class recovery.

6. About Labaton Keller Sucharow LLP

Labaton Keller Sucharow LLP is a prominent law firm with a storied history in securities litigation, representing a variety of large pension funds and institutional investors globally. With a robust team of over ninety attorneys, financial analysts, and investigators, Labaton has earned recognition for its excellence in the legal field.

As AppLovin navigates these legal challenges, the implications for its business model and future operations remain to be seen. Investors and industry observers will be watching closely as the situation develops.

Original press release