Pomerantz LLP and Faruqi & Faruqi, LLP announced investigations into Duolingo on March 12, 2026. The law firms are examining whether the company or its directors engaged in securities fraud or unlawful business practices.
The probes follow a February 26, 2026, announcement regarding a strategic shift to prioritize user growth. This pivot is expected to result in slower bookings growth. The company also forecasted lower profitability in the near term.
Duolingo's stock price dropped over 14% on February 27, 2026.