AppLovin Corporation (APP) Faces Securities Class Action After Losing Over $14 Billion Of Shareholder Value – Hagens Berman

Core Viewpoint - A securities class action lawsuit has been filed against AppLovin Corporation, alleging that the company misled investors regarding its AXON 2.0 digital ad platform, leading to significant financial losses for shareholders [1][2][3]. Company Overview - AppLovin Corporation is facing legal scrutiny due to claims that it made false and misleading statements about its financial growth and the capabilities of its AXON 2.0 platform, which is marketed as a cutting-edge AI technology for digital advertising [2][3]. Legal Proceedings - The class action lawsuit seeks to represent investors who purchased AppLovin securities between May 10, 2023, and February 25, 2025, with a lead plaintiff deadline set for May 5, 2025 [1][2]. - The lawsuit follows adverse reports from short sellers that raised concerns about the company's practices and the legitimacy of its growth strategies [3][6]. Short Seller Reports - Fuzzy Panda Research accused AppLovin of exploiting consumer data in violation of app store policies and predicted potential removal from Google and Apple's app stores [4]. - Culper Research claimed that AXON 2.0 is primarily a promotional tool rather than a legitimate AI-driven product, alleging that the company's success in mobile gaming is due to unethical practices [5]. Financial Impact - Following the publication of the short seller reports, AppLovin's share price dropped by $46.06, a decline of 12$14 billion in shareholder value in a single trading day [5].