Robbins Geller Rudman & Dowd LLP has filed a class-action lawsuit against Duolingo and certain executives, alleging violations of the Securities Exchange Act of 1934. The suit is on behalf of investors who purchased Duolingo common stock between May 2, 2025, and February 26, 2026.
The complaint alleges Duolingo made misleading statements about its Daily Active User (DAU) growth. It claims the company failed to disclose that deliberate changes to the user experience—including more ads and subscription upsells—were hurting user growth. It also alleges that quickly generated AI content diminished product quality.
The lawsuit says these issues came to light in Duolingo’s February 26, 2026, financial report, which reported slower user growth and projected a material negative impact on future bookings and revenue. Duolingo’s stock price fell significantly after the announcement.
The suit seeks damages for investors who suffered substantial losses.