Investors Alert: AppLovin Faces Securities Fraud Class Action – Act Before May 5, 2025
There’s big news out about AppLovin Corporation (NASDAQ: APP) and you shareholders will certainly want to pay attention. There has been a class action lawsuit brought against AppLovin and certain senior executives for securities fraud. You could be a part of this lawsuit if you bought or otherwise acquired AppLovin shares between May 10, 2023, and February 25, 2025.
The case, officially called Quiero v. AppLovin Corporation, Inc., is pending in the Northern District of California under the case number 25-cv-02294. Right now, there are just a few days left until May 5, 2025 for investors to file a motion to serve as the lead plaintiff. If you’ve faced substantial losses, this might be your opportunity to take action.
What Is the Lawsuit About?
AppLovin positioned itself as a software company that facilitates the optimization of mobile content marketing and monetization for advertisers. One of the main selling points was its cutting-edge AXON 2.0 digital ad platform and its touted next-generation AI technology. The technology, according to the company’s claims, would enhance the ad-to-game matching and allow them to venture into web-based marketing and online commerce.
But, the lawsuit asserts, there was a much different tale brewing behind the scenes. The complaint alleges AppLovin was not exactly playing by the book more like, exploiting ad information of Meta Platforms’ ownership. Even worse, the company allegedly was using dirty tactics, including adding unwanted programs on users’ systems through what the lawsuit describes as a “backdoor installation scheme.”
These nefarious tactics supposedly pumped up their app downloads, which subsequently inflated their stated revenues. The investors, swallowing the numbers and the tale hook, line and sinker, invested in AppLovin without a real picture in view.
What Caused the Lawsuit
The melodrama played out on Feb. 26, 2025, when a series of analyst reports were published. The reports accused AppLovin of reverse-engineering Meta’s ad metrics and resorting to subterfuge to fabricate false click-through and app download rates. Some of the techniques used included triggering ads to automatically “click” or using deceptive graphics to push people into accidental downloads unwittingly.
As you can probably imagine, when the news became public, the market reacted and not to the benefit of AppLovin. The company’s stock price fell over 12% virtually overnight. For investors, that precipitous drop was a big letdown and the impetus for filing the class action lawsuit.
Under the Private Securities Litigation Reform Act of 1995, any shareholder who bought AppLovin shares during the Class Period can be the lead plaintiff if they so choose.
The lead plaintiff is no nominal position – the person actually fronts the suit in the name of the remaining members of the class. The lead plaintiff is often the investor who would stand to lose the most cash and can fairly and represent the interests of the group on an equitable basis.
If you worry about whether or not being lead plaintiff affects your chances of receiving a future recovery or settlement — no worry. You still can share in any ultimate recovery even if you are not lead plaintiff.
If you have an interest, you might want to contact lawyers J.C. Sanchez or Jennifer N. Caringal at the law firm on this case, Robbins Geller Rudman & Dowd LLP. They can be reached by telephone at 800/449-4900 or by email at [email protected].
What Is Robbins Geller?
If you don’t know them, then Robbins Geller Rudman & Dowd LLP is one of the world’s best law firms on which to file securities fraud and shareholder class actions.
They have a strong record indeed, they were #1 on the ISS Securities Class Action Services list for four of the last five years for recovering the most dollars for investors. Robbins Geller recovered over $2.5 billion for investors in 2024 alone — more than the next combined five firms!
They employ about 200 lawyers in 10 offices, and they’ve recovered some of the biggest securities class action recoveries ever. Most notably, perhaps, they handled the Enron securities case, recovering a then-record $7.2 billion for shareholders.
Bottom line you’re not alone if you’re an investor who feels ripped off by what’s happening at AppLovin, because you’re with Robbins Geller.
Why This Matters?
Securities fraud can destroy investors who had placed their trust in the news that the firms in which they had invested. If companies deceive investors by overstating their performance or concealing unethical practices, they are violating federal securities regulations and investors should be vindicated.
The AppLovin controversy is a concrete reminder that even the most tech-savvy firms and AI bravado talk are not beyond reproach. If the claims hold water, it is a testament to how much of an imperative it is that investors need to be well-researched and hold firms accountable where they cross legal and moral limits.
There’s still time to move, but the clock is running out – remember, the May 5, 2025 deadline to move for lead plaintiff status. If you or someone you know bought AppLovin stocks during the Class Period and lost money, now’s the time to move.
