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Investor Notice: Class Action Lawsuit Against Duolingo, Inc.

The law firm Robbins Geller Rudman & Dowd LLP has recently announced that a class action lawsuit has been filed against Duolingo, Inc. (NASDAQ: DUOL). This lawsuit targets investors who purchased Class A common stock during the time frame from May 2, 2025, to February 26, 2026. Potential plaintiffs have until December 7, 2026, to step forward as lead plaintiffs in this legal undertaking, formally titled City of Dearborn Heights Act 345 Police & Fire Retirement System v. Duolingo, Inc., and filed in the U.S. District Court for the Western District of Pennsylvania.

Background of the Case

This lawsuit arises during a period where substantial claims are being made regarding Duolingo's business practices. The core allegations suggest that Duolingo, along with certain current and former executives, may have violated the Securities Exchange Act of 1934. Specific charges include misleading investors about daily active user (DAU) growth rates, which were purportedly manipulated through increased advertising volume, subscription upselling, and deteriorated product quality.

Allegations of Misleading Statements

The lawsuit accuses Duolingo of leveraging a strategy that intentionally created user friction, thereby adversely impacting user retention. The firm argues that the company’s own A/B testing indicated that increased friction in the user experience directly led to a decline in DAU growth rates. Furthermore, it highlights concerns that hastily generated content through AI technology was degrading overall product quality.

Financial Performance and Stock Impact

Reports reveal a worrying trend in Duolingo's third-quarter performance, showing DAU growth decreasing to 36%, down from 49% in the first quarter of 2025 and 40% in the second quarter. Following this revelation, Duolingo's share price dropped by 25%. Subsequent financial disclosures pointed towards an urgent need for the company to pivot its focus onto user growth, rather than continued monetization. On January 12, 2026, the announcement of the resignation of Duolingo's Chief Financial Officer, Matthew Skaruppa, further eroded investor confidence as DAU growth dropped to a mere 30%.

Importance of the Lead Plaintiff Process

Under the Private Securities Litigation Reform Act of 1995, any investor who purchased Duolingo Class A stock during the stated period can apply to become a lead plaintiff in this case. The primary role of the lead plaintiff is to represent the interests of the entire class of investors in the lawsuit. Importantly, becoming a lead plaintiff allows for the selection of legal representatives, ensuring all affected investors can potentially receive reparations regardless of their leading position in the case.

Call for Participation

Investors who believe they have incurred significant losses due to Duolingo’s actions during the class period are encouraged to participate. Their involvement not only impacts their individual stakes but contributes to broader shareholder accountability within the public market. Those interested in becoming a lead plaintiff can submit their information through Robbins Geller's official page or contact attorneys Ken Dolitsky or Michael Albert directly.

About Robbins Geller

Founded as a leader in the field of securities litigation, Robbins Geller Rudman & Dowd LLP has gained significant acclaim for its advocacy on behalf of investors. The firm has achieved notable success, recovering upwards of $916 million for investors in 2025 alone, highlighting their dedication to safeguarding shareholder rights.

As developments unfold in this case against Duolingo, affected investors should remain vigilant, informed, and proactive in seeking justice for their losses.

For further details regarding the lawsuit, please visit Robbins Geller's official website.