Pomerantz Law Firm Investigates Duolingo Investors Claims Under Securities Fraud Allegations

Investor Alert: Pomerantz Law Firm Investigates Duolingo, Inc.

On September 8, 2025, the Pomerantz Law Firm announced an investigation into potential claims on behalf of investors in Duolingo, Inc. (NASDAQ: DUOL). This inquiry comes amidst troubling news regarding the company's user engagement metrics, which may suggest securities fraud and other possible illicit business practices. If you are an investor in Duolingo, it is crucial to stay informed about the developments surrounding this investigation.

The firm's investigation is particularly focused on statements made by Duolingo and its management that may misrepresent the company's true financial health and business performance. Pomerantz is renowned for its role as a leader in corporate law and class action litigation, particularly concerning cases of securities fraud. With more than 85 years of expertise in holding corporations accountable, the firm aims to protect the rights of investors and ensure that those affected by potential misconduct receive the justice they deserve.

A critical turning point for Duolingo emerged on July 28, 2025, when JMP Securities reduced its price target for the company's stock from $475 to $450. This adjustment was largely due to emerging concerns regarding a slowdown in user engagement just prior to the company's second-quarter earnings report. Data from third-party sources indicated that the annual growth rate of daily active users had decreased significantly from 51% in the first quarter to approximately 39% in the second quarter. This decline is not only a red flag for the company but also a signal of potential deeper issues within its operational framework.

Following this news, Duolingo's stock encountered a notable drop, losing $23.60, or 6.48%, and closing at $340.49 per share. This was a substantial reaction from the market, underlining investor concerns regarding the company's trajectory and the potential implications of declining user engagement on its revenue and sustainability.

Investors seeking insight and further details about the investigation can contact Danielle Peyton at Pomerantz via email at [email protected] or call at 646-581-9980, ext. 7980. Joining the class action may be an option for stakeholders wishing to assert their rights amidst these troubling allegations.

Pomerantz LLP, which maintains offices across several global cities including New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, has established a legacy as a leading advocate for victims of corporate misdeeds. This firm's focus on securing multimillion-dollar damages for class members is a testament to its commitment to high-stakes litigation in the realm of corporate governance and securities law.

In conclusion, the recent declines in Duolingo's user engagement metrics and the subsequent investigation by Pomerantz Law Firm highlight the importance of remaining vigilant as an investor. Potential securities fraud represents not only a legal issue but a deep-seated risk that could impact the future of the company and its stakeholders. Investors are encouraged to monitor this matter closely and consider their positions as developments unfold in the coming weeks and months.