Pomerantz Law Firm Investigates Potential Securities Fraud Against Duolingo, Inc.

On August 22, 2025, the Pomerantz Law Firm announced an investigation regarding possible securities fraud relating to Duolingo, Inc., a popular language-learning platform, which trades under the NASDAQ symbol DUOL. Amid growing concerns regarding its operational practices, the firm is encouraging concerned investors to contact them for further assistance.

The investigation comes on the heels of a significant decline in Duolingo's stock value, attributed to a lowered price target by JMP Securities. On July 28, 2025, JMP Securities adjusted its price estimation for Duolingo’s shares, reducing it from $475 to $450. This adjustment was primarily due to alarming data that revealed a deceleration in user engagement metrics. Reports indicated that the year-over-year growth rate for daily active users plummeted to approximately 39% in the second quarter, a stark contrast compared to a growth rate of around 51% in the preceding quarter.

As this news broke, Duolingo's stock price took a notable hit, dropping by $23.60, equivalent to a 6.48% decline, ultimately closing at $340.49. This downward trend raised red flags among investors, prompting the inquiry by Pomerantz LLP into the company’s potential misconduct.

Founded by pioneering attorney Abraham L. Pomerantz, whose work laid the groundwork for securities class actions, Pomerantz LLP has a rich history of advocating for investors' rights. With over 85 years of experience, the firm has been instrumental in recovering substantial damages for clients harmed by inadequate disclosures and apparent business improprieties. The firm operates globally, with offices in key cities such as New York, Los Angeles, London, and Paris.

Investors of Duolingo, Inc. are encouraged to reach out to Danielle Peyton at Pomerantz LLP for guidance and to explore their options for participation in the class action lawsuit. Interested parties can contact her directly via email at [email protected] or by phone at (646) 581-9980, ext. 7980.

The firm’s investigation aims to determine whether Duolingo and its executives have engaged in any form of unlawful business practices or securities fraud, which could further hurt the interests of shareholders.

In today's increasingly competitive tech landscape, companies like Duolingo must ensure transparency and integrity in their operations to retain investor trust. As investigations continue, stakeholders are reminded of their rights and encouraged to seek counsel if they feel they have been wronged.

For further updates on this developing situation and more on the potential ramifications for Duolingo and its investors, stay connected with news releases from Pomerantz LLP and other reputable news sources.

Conclusion

As we navigate through this tumultuous time for Duolingo investors, the actions taken by Pomerantz LLP are crucial for safeguarding investor rights and bringing accountability to corporate governance. The outcome of this investigation could have far-reaching consequences for the company and its stakeholders in the coming months.