Duolingo Faces Investor Securities-Fraud Lawsuit

Several law firms have announced a securities class action against Duolingo on behalf of investors who bought or acquired its securities from May 2, 2025, through February 26, 2026. The complaints allege the company misled investors about user growth and product performance by failing to disclose that heavier advertising, subscription upselling and lower-quality AI-generated content were hurting the user experience and daily active user growth. Duolingo reported DAU growth had slowed to 36% in the third quarter of 2025, down from 49% in the first quarter and 40% in the second; subsequent disclosures and the CFO’s departure were followed by further stock declines. Investors have until December 7, 2026, to seek appointment as lead plaintiff, though they do not have to take that role to participate in any potential recovery. The claims are allegations, and the lawsuit’s outcome has not been established.