Investors Target Duolingo in Securities Class Action Lawsuit

The complaint, filed by the law firm Robbins LLP, targets Duolingo’s Class A common stock performance between May 2, 2025, and February 26, 2026. According to the filing, the company aggressively pushed ads and upsells to boost revenue while simultaneously deploying AI-generated content that failed to meet historical quality standards. These actions allegedly triggered significant friction for free users, leading to a marked slowdown in daily active user (DAU) growth.

Financial disclosures throughout the class period signaled the depth of these issues. On November 6, 2025, shares plummeted 25% after the company revealed a drop in DAU growth to 36% and announced a pivot away from its monetization-heavy strategy. Further instability followed the January 2026 resignation of CFO Matthew Skaruppa and a subsequent earnings report in February 2026, which projected 2026 DAU growth at only 20%. CEO Luis von Ahn acknowledged that the company had intentionally introduced friction into the user experience, a move executives reportedly knew would discourage user retention.

Investors who purchased shares during the class period and incurred losses have until December 7, 2026, to file for lead plaintiff status. Robbins LLP is managing the case on a contingency basis, meaning no out-of-pocket costs are required for those seeking to join the action.