US EditionAppLovin not lovin' short seller assault claiming ad fraud
- Kirby McInerney LLP announced a class action lawsuit filed in the U.S. District Court for the Northern District of California on behalf of investors who acquired AppLovin Corporation securities between May 10, 2023, and February 25, 2025, with a deadline of May 5, 2025, to apply for lead plaintiff status.
- The lawsuit alleges that AppLovin provided misleading information to investors regarding the company's financial growth and stability, leading to securities fraud and artificially inflated financials during the class period.
- Short seller reports from Fuzzy Panda Research, Culper Research, and Muddy Waters alleged that AppLovin was reverse engineering and exploiting advertising data, utilizing manipulative practices to inflate ad click-through and app download rates by having ads click on themselves and using design gimmicks for forced downloads.
- Following these reports, AppLovin's shares experienced a significant decline, with one instance showing a drop of $46.06 per share, or approximately 12%, on February 26, 2025, and another instance showing a drop of 20% or $65.92, closing at $261.70.
- In response to the short seller claims, AppLovin hired Quinn Emanuel Urquhart & Sullivan, including partner Alex Spiro, to investigate the allegations, with CEO Adam Foroughi defending the company's technology and denouncing the short sellers' motives, while also laying off 97 employees.
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Leaning Left1Leaning Right2Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
14%
C 57%
R 29%
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