Investigation Launched by Pomerantz Law Firm for Duolingo Investors Amid Concerns of Stock Decline

Pomerantz Law Firm Investigates Duolingo, Inc. Claims

The Pomerantz Law Firm has initiated an investigation on behalf of investors of Duolingo, Inc. (NASDAQ: DUOL). This investigation arises from concerns regarding possible securities fraud and other illegal business practices that might involve the company’s officers and directors. Investors who believe they may have been affected by Duolingo’s business practices are encouraged to reach out to the law firm for assistance.

On July 28, 2025, JMP Securities made headlines when it reported a downgrading of Duolingo's stock price target from $475 to $450. This adjustment was influenced by alarming data indicating a slowdown in user engagement just ahead of the company’s second-quarter earnings report. Insights from third-party data revealed that the growth of daily active users had dropped to approximately 39% year-over-year for the second quarter, a sharp decline from the roughly 51% rate recorded in the previous quarter.

Consequently, this news resulted in a significant impact on the company's stock, which fell by $23.60 per share or 6.48%, closing at $340.49 on the same day.

Pomerantz LLP is notable for its focused approach in handling corporate, securities, and antitrust litigation, and it continues the legacy established by its founder, Abraham L. Pomerantz, who is well-respected in the field of securities class actions. Over its 85 years of operation, the firm has successfully recovered numerous multimillion-dollar settlements on behalf of those affected by corporate misconduct and securities fraud. For those affected by Duolingo’s stock decline or suspicious business practices, information on joining the class action can be easily accessed through the firm.

In these challenging times, investors must remain vigilant and informed about the companies they are involved with, especially when experiencing market fluctuations and public company announcements. Pomerantz’s investigation highlights the importance of investor rights and aims to shed light on various illegal practices that may have occurred in Duolingo’s management. The investigation is ongoing, and more details will likely emerge as various stakeholders respond to the findings.

For individuals seeking further information or for those who wish to participate in this class action, Pomerantz LLP encourages contacts via email at [email protected] or by calling their office at 646-581-9980, ext. 7980. It is of utmost importance that investors make their voices heard as potential discrepancies in the handling of Duolingo's operations are scrutinized.

Overall, while the future of Duolingo may seem precarious due to this stock decline and user engagement issues, the very act of investigation by a respected law firm such as Pomerantz may serve as a beacon of hope for investors seeking justice and transparency in the company’s business dealings.