NEW YORK, March 06, 2025 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities who purchased the securities of AppLovin Corporation (“AppLovin” or the “Company”) (NASDAQ: APP) between May 10, 2023 and February 25, 2025, both dates inclusive (the “Class Period”).
The Complaint alleges that Defendants provided investors with material information concerning AppLovin’s financial growth and stability. The Complaint further alleges that Defendants’ statements included, among other things, confidence in AppLovin’s launch of its AXON 2.0 digital ad platform and using “cutting-edge AI technologies” to more efficiently match advertisements to mobile games, in addition to expanding into web-based marketing and e-commerce. The Complaint continues to allege that Defendants publicly reported impressive financial results, outlooks, and guidance to investors, all while using dishonest advertising practices.
The Complaint further alleges that Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts related to AppLovin’s manipulative practices to force unwanted apps on customers using a “backdoor installation scheme” which inaccurately inflated installation numbers, and, in turn its profitability. The Complaint alleges that such statements absent these material facts caused Plaintiff and other shareholders to purchase AppLovin’s securities at artificially inflated prices.
According to the Complaint the truth emerged on February 26, 2025, when analyst research reports emerged stating that AppLovin was reverse engineering and exploiting advertising data from Meta Platforms. The Complaint further alleges that the reports further alleged AppLovin was utilizing manipulative practices to artificially inglate their own ad click-through and app download rates, such as by having ads click on themselves or utilizing design gimmicks to trigger forced shadow downloads, erroneously inflating installation numbers and, in turn, its profit figures.
The Complaint further alleges that investors and analysts reacted immediately to AppLovin’s revelations. The Complaint alleges that the price of AppLovin’s stock declined from $377.06 per share on February 25, 2025 to $331.00 per share on February 26, 2025.
Investors who purchased or otherwise acquired shares of AppLovin should contact the Firm prior to the May 5, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
