Robbins Geller Rudman & Dowd LLP Initiates Class Action Against Duolingo for Investor Losses

Investor Alert: Class Action Lawsuit Filed Against Duolingo, Inc.

Robbins Geller Rudman & Dowd LLP, a prominent law firm known for representing investors, has officially filed a class action lawsuit against Duolingo, Inc. (NASDAQ: DUOL). This lawsuit pertains to purchasers of Duolingo's Class A common stock who acquired shares between May 2, 2025, and February 26, 2026. The firm is currently inviting affected investors to apply for the position of lead plaintiff in this significant case, aiming to recover losses suffered during this period.

Background of the Case

The lawsuit, titled City of Dearborn Heights Act 345 Police & Fire Retirement System v. Duolingo, Inc., alleges that the company, along with certain current and former executives, violated the Securities Exchange Act of 1934. Specifically, the claims center around misleading statements made during the specified class period which resulted in substantial financial losses for investors.

One primary allegation claims that Duolingo's growth metrics were propped up by artificial means. It is asserted that the firm's management knowingly increased user friction through a rise in ad volume and subscription tier upsells, which endangered user retention and overall growth of Daily Active Users (DAUs). Furthermore, evidence from rigorous A/B testing reportedly indicated that this friction negatively impacted user engagement and satisfaction.

Notably, the lawsuit also states that hastily produced AI-generated content diminished the quality of offerings, causing dissatisfaction among users and jeopardizing the company's long-term financial health.

Recent Developments

Recent announcements by Duolingo have confirmed these concerns. On November 5, 2025, the company reported a dismal decline in DAUs, revealing growth had dropped to a concerning 36%. This was a significant decrease from growth rates of 49% in the first quarter of 2025 and 40% in the second quarter. Following these revelations, the stock price plummeted by 25%.

A further blow came on January 12, 2026, with the resignation of Duolingo’s CFO, Matthew Skaruppa, coupled with a disappointing preliminary report indicating a further slump to 30% growth. In response, the stock fell an additional 8.5%.

Finally, on February 26, 2026, Duolingo's fourth-quarter financial report underscored the consequences of their strategic shifts, revealing material adverse effects on bookings and revenue for the remainder of the fiscal year. Another 14% drop in stock price followed this announcement.

Who Can Participate?

Investors who purchased Duolingo Class A common stock during the specified period are eligible to apply to be the lead plaintiff in this lawsuit. A lead plaintiff is generally an investor with the most significant financial stake in the outcome of the class action, representing the collective interests of other class members. It is important to note that potential recovery from any resolution of this class action lawsuit is not contingent on being appointed as the lead plaintiff.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP ranks among the most reputable law firms globally in the sphere of securities fraud and shareholder rights litigation. The firm's impressive track record includes recovering substantial sums for investors, including over $916 million in 2025 alone. Their commitment to holding companies accountable for financial wrongdoing is significant, and they encourage any investors with substantial losses related to Duolingo to come forward.

For additional information or to commence the process of becoming a lead plaintiff, potential participants can access the lawsuit details on Robbins Geller’s website or contact the firm directly.

Conclusion

This class action represents a critical opportunity for investors negatively impacted by Duolingo's recent strategic errors. As more details unfold, investors will be closely monitoring how this litigation could potentially restore their financial interests and provide a pathway for accountability within the company. The deadline for seeking appointment as lead plaintiff is set for December 7, 2026, creating a limited window for action.