Investor Alert: Pomerantz Law Firm Investigates Duolingo, Inc. Amid Claims of Securities Fraud

Overview of the Investigation



Pomerantz LLP has recently launched an investigation regarding possible securities fraud involving Duolingo, Inc. (NASDAQ: DUOL) and its executives. This inquiry aims to determine whether Duolingo's officers and directors may have engaged in illicit business practices adversely affecting investors. Investors who feel they may have been impacted are encouraged to reach out to the firm directly through contact details provided by their legal team.

Context Behind the Investigation



The investigation comes on the heels of significant stock market activity provoked by findings related to Duolingo's user engagement rates. On July 28, 2025, JMP Securities adjusted its price target for Duolingo's stock downward from $475 to $450. This adjustment stemmed from disconcerting evidence suggesting a decline in daily active user growth rates. The reported year-over-year growth fell to approximately 39% in the second quarter of 2025, a dip from the previously reported 51% in the first quarter. This slowdown has raised red flags for investors, prompting a swift reaction that saw Duolingo's stock drop by $23.60, resulting in a 6.48% decline to $340.49 per share on the same day.

The Role of Pomerantz LLP



Pomerantz LLP is widely respected in the legal sphere, particularly in corporate, securities, and antitrust class-action litigation. Established more than 85 years ago by Abraham L. Pomerantz, often referred to as the pioneer of securities class actions, the firm has a long-standing tradition of advocating for investor rights. The firm boasts an impressive track record of securing substantial financial recoveries for victims of securities fraud and corporate misconduct.

Shareholder Concerns and Potential Actions



With the sudden drop in stock price and the investigations ongoing, current shareholders of Duolingo may feel uncertain about their investments. It’s important to remember that legal avenues are available to address such concerns. By joining class action lawsuits like the one currently being formed by Pomerantz LLP, affected investors have a platform through which they can seek restitution and accountability from the company's leadership.

Forward-Looking Statements



The legal landscape surrounding securities is complex and often fraught with challenges. However, Pomerantz's experienced attorneys are prepared to tackle these issues aggressively. The investigation aims not only to uncover the truth regarding Duolingo's business practices but to also safeguard the interests of investors who may have suffered as a result of the alleged misconduct.

For further inquiries, investors can contact Danielle Peyton at Pomerantz LLP via email or phone, as referenced earlier. The firm's representatives are available to discuss potential claims and record testimonies for those impacted by the recent fluctuations in Duolingo stock.

Topics Financial Services & Investing)

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