Investors Target Duolingo in Securities Class Action Over Growth Claims

The lawsuit, filed in the U.S. District Court for the Western District of Pennsylvania, alleges that Duolingo and its executives misled shareholders regarding the health of its user metrics. According to the complaint, the company prioritized aggressive monetization tactics—including increased ad volume and subscription upsells—despite internal A/B testing that indicated these strategies were degrading product quality and driving users away. The suit further claims that the company’s reliance on rapidly generated AI content compromised the user experience, contradicting public assertions that these updates were improving retention.

The company’s financial performance faltered repeatedly throughout the class period, triggering sharp stock price declines. Following a report on November 5, 2025, that revealed a sequential drop in Daily Active User growth to 36%, the stock fell 25%. Further volatility followed the January 2026 resignation of CFO Matthew Skaruppa and a subsequent earnings report in February 2026, which confirmed that the company's strategy shift would have material negative impacts on future bookings and EBITDA. Shares dropped an additional 14% on that news.

Robbins Geller Rudman & Dowd LLP, the firm representing the plaintiffs, is currently seeking investors with substantial losses to lead the litigation. Under the Private Securities Litigation Reform Act of 1995, the lead plaintiff serves as a representative for the class to oversee the proceedings and select legal counsel. Interested parties may contact attorneys Ken Dolitsky or Michael Albert to participate in the ongoing case.