Robbins LLP is Investigating Allegations that Duolingo, Inc. (DUOL) Misled Investors Regarding the Quality and Sustainability of Its Product

Robbins LLP informs investors that a class action was filed on behalf of all persons who purchased Duolingo, Inc. (NASDAQ: DUOL) Class A common stock between May 2, 2025 and February 26, 2026, inclusive (the “Class Period”). Duolingo is a leading, U.S.-based mobile learning platform that primarily focuses on language learning.

Why Was Duolingo Sued?

According to the complaint, defendants engaged in a deliberate effort to conceal the negative impacts from the Company’s push to increase monetization of its user base by bombarding them with relentless ads, upsells, and other sources of friction, while simultaneously increasing Duolingo’s reliance on and use of rapidly generated AI content that was of worse quality than what the Company historically offered. All the while, defendants assured investors Duolingo was experiencing sustainable growth, including in critical metrics such as daily active users (“DAUs”) and bookings (e.g., users paying for Duolingo subscriptions).

Why Did Duolingo Stock Drop?

Plaintiff alleges that the truth about Duolingo came out in three partial Class Period disclosures.

First, on November 5, 2025, the Company reported its third quarter financial results, revealing a decline in DAU growth to 36%, a substantial drop from 49% in 1Q 2025 and 40% during 2Q 2025. Defendants revealed a reversal of the Company’s monetization push and stated that going forward, the Company would prioritize user growth over monetization and that the Company needed to invest more in “teaching better across all our subjects.” In response, the price of Duolingo stock dropped sharply, falling 25%, or $66.28 per share, to close at $193.74 on November 6, 2025.

Next, on January 12, 2026, Duolingo announced that its Chief Financial Officer, Matthew Skaruppa, had resigned. The Company also provided limited, preliminary fourth quarter 2025 operating metrics, shocking investors by revealing DAU growth of only 30% – nearly six points of additional deceleration from 3Q 2025. In response, Duolingo stock fell another 8.5%, or $14.92 per share, to close at $161.74 on January 12, 2026.

Then, after the market closed on February 26, 2026, Duolingo announced its 4Q 2025 financial results, confirmed the slowdown in DAU growth, and revealed the financial consequences of its strategy shift would result in material negative impacts on 2026 bookings, DAU growth rates, revenue, and adjusted EBITDA. To that end, Defendants stated 2026 DAU growth would come in at a mere 20% and be accompanied by lower bookings and less profitability. Von Ahn further admitted that, during its monetization push, the Company deliberately introduced “friction” into the free user experience, which the Company and its high-ranking executives knew would cause users to leave the app and result in DAU slowdowns. In response to these additional disclosures, the price of Duolingo stock fell again, dropping 14%, or $16.45 per share, to close at $101 per share on February 27, 2026.

Who May Be Eligible to Participate in the Duolingo, Inc. Class Action?

The lawsuit seeks to represent investors who purchased or otherwise acquired Duolingo, Inc. Class A common stock between May 2, 2025 and February 26, 2026. Investors who suffered losses during that period may have legal rights under the federal securities laws. Submit a form for information.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.