#USA #New York #Pomerantz LLP #Duolingo Inc #DUOL

Pomerantz Law Firm Investigates Duolingo, Inc.

On August 6, 2025, Pomerantz LLP, a prominent law firm known for its vigorous advocacy in securities fraud cases, disclosed that it is investigating possible claims on behalf of investors of Duolingo, Inc. (NASDAQ: DUOL). The inquiry aims to determine whether Duolingo, its directors, and officers have been involved in unlawful practices or securities fraud.

This investigation comes in light of recent events that have raised red flags regarding the company’s operations and financials. Specifically, on July 28, 2025, JMP Securities reduced its price target for Duolingo by $25, dropping it from $475 to $450. This adjustment was attributed to deterioration in user engagement—a crucial metric for the company's ongoing success.

Reasons for Concern

According to third-party data, the growth of daily active users for Duolingo slowed significantly in the second quarter of 2025, plummeting to approximately 39% year-over-year compared to a more robust 51% growth in the first quarter. Such a substantial decrease not only affects the company’s immediate financial outlook but also raises questions about its long-term viability and its market strategy.

As a result of this adverse news, Duolingo’s stock fell sharply by $23.60, or 6.48%, closing at $340.49. For investors, such fluctuations can be alarming, especially when there is an ongoing inquiry into the company’s business practices.

Pomerantz LLP's Role

Pomerantz LLP, which has established itself as a leading firm in corporate and securities litigation, is reaching out to investors affected by Duolingo’s recent downturn. They are encouraging individuals who may have been impacted to contact attorney Danielle Peyton at the firm's office for potential inclusion in the investigation. Pomerantz has a rich history, with over 85 years of experience in advocating for shareholders' rights and holding corporations accountable for their actions.

Implications for Duolingo

The implications of this investigation and the falling user engagement could be far-reaching for Duolingo. Investors will be keenly watching how the company responds to these challenges. Slowing user growth may lead to reassessments of Duolingo’s profitability and market position, putting further pressure on the company’s leadership to deliver in upcoming earnings reports.

The current situation is poignant for all involved, as securities fraud claims can lead to class-action lawsuits which pose significant financial risks for companies. If Pomerantz finds substantial evidence, it could lead to serious repercussions not only for the individuals at the helm of Duolingo but also for the company’s reputation in the market.

Conclusion

As the investigation unfolds, both current and potential investors in Duolingo will have critical decisions to make. The firm's investigation serves as a reminder of the intricate complexities involved in the world of investments and the imperative for transparency from public companies. The situation surrounding Duolingo's current standing and future trajectory is one that stakeholders will need to monitor closely, as more updates become available.