What's Next for Duolingo, Inc. Shareholders After 25.49% Stock Drop? Glancy Prongay Wolke & Rotter LLP Explains Securities Fraud Class Action Lead Plaintiff Deadline
Complaint alleges Duolingo, Inc. misled investors between May 2, 2025 and February 26, 2026; investors may seek lead plaintiff role by December 7, 2026
LOS ANGELES, Oct. 20, 2026 /PRNewswire/ -- Glancy Prongay Wolke & Rotter LLP ("Glancy") announced today that the class action lawsuit covers investors who bought Duolingo, Inc. ("Duolingo" or the "Company") (NASDAQ: DUOL) securities between May 2, 2025 and February 26, 2026. The Duolingo, Inc. case, City of Dearborn Heights Act 345 Police & Fire Retirement System v. Duolingo, Inc. et al., was filed on October 7, 2026 in the U.S. District Court Western District of Pennsylvania (Pittsburgh) (Case No. 2:26-cv-02197).
Investors who suffered losses on Duolingo, Inc. investments can submit their Duolingo, Inc. loss information here before the December 7, 2026 lead plaintiff deadline.
Key dates in the Duolingo, Inc. case
- Class period: May 2, 2025 to February 26, 2026
- Complaint filed: October 7, 2026
- Lead plaintiff deadline: December 7, 2026
What happened?
On November 5, 2025, Duolingo, Inc. announced its financial results for the third quarter of 2025. It disclosed that growth in daily active users had slowed for yet another consecutive quarter, falling to 36% from 40% in the second quarter of 2025 and 49% in the first quarter of 2025. The Company also disclosed that it was retreating from its push to increase monetization. It stated that it would now place user growth ahead of monetization and that it needed to invest more heavily in "teaching better across all our subjects."
On this news, Duolingo, Inc. stock fell $66.28 or 25.49%, to close at $193.74 on November 6, 2025, thereby injuring investors.
Then, on January 12, 2026, Duolingo, Inc. disclosed the resignation of its Chief Financial Officer, Matthew Skaruppa. In the same announcement, the Company released limited preliminary operating metrics for the fourth quarter of 2025, which showed growth in daily active users of only 30%. This was a further slowdown of six percentage points from the third quarter of 2025.
On this news, the price of Duolingo, Inc. stock fell $14.92 or 8.45%, to close at $161.74 on January 12, 2026, thereby further injuring investors.
Finally, on February 26, 2026, Duolingo, Inc. released its financial results for the fourth quarter of 2025. The results confirmed the slowdown in daily active user growth and showed that the financial effects of the Company's change in strategy would not be "small" or "little." Instead, they would materially harm its 2026 bookings, daily active user growth rates, revenue, and adjusted EBITDA.
On this news, the price of Duolingo, Inc. stock fell $16.45 or 14.01%, to close at $101 on February 27, 2026, thereby further injuring investors.
What is the Duolingo, Inc. lawsuit about?
The Duolingo, Inc. securities lawsuit alleges that, between May 2, 2025 and February 26, 2026, defendants made materially false and/or misleading statements and failed to disclose material adverse facts about Duolingo, Inc.'s business, operations, and prospects. Specifically, the complaint alleges defendants failed to disclose that: (1) Daily Active User ("DAU") growth rates were being leveraged against deliberately added user friction in the form of significant increases in ad volume, subscription tier upsells, and worsened product quality, and defendants understood that any amount of user friction would cause users to leave the app and, ultimately, negatively impact DAU growth rates; (2) Duolingo's rigorous A/B testing demonstrated to defendants that increased friction in the free user experience was having negative impacts on DAU growth rates; (3) Duolingo's quickly generated AI content was worsening the quality of Duolingo's product offerings, negatively impacting the user experience and user trends, and threatening the sustainability of Duolingo's financial performance; (4) far from driving sustained growth and strong user momentum through content and "product improvements" that "get improved retention," Duolingo's constant A/B testing informed Duolingo that its monetization push and lower-quality, rapidly generated AI content were degrading the Duolingo product experience and the value proposition of its subscription tiers; and (5) as a result, defendants' positive statements about Duolingo, Inc.'s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
"The complaint filed against Duolingo, Inc. alleges that, among other things, the Company failed to disclose that Daily Active User ("DAU") growth rates were being leveraged against deliberately added user friction in the form of significant increases in ad volume, subscription tier upsells, and worsened product quality, and defendants understood that any amount of user friction would cause users to leave the app and, ultimately, negatively impact DAU growth rates. For investors who bought during the class period, the December 7, 2026 deadline is the first major step in this case," said Charles H. Linehan, Partner at Glancy Prongay Wolke & Rotter LLP.
What's the next step?
Glancy Prongay Wolke & Rotter LLP is a leading national shareholder rights law firm, ready to assist Duolingo, Inc. investors in potentially pursuing claims to recover their losses.
If you wish to serve as lead plaintiff in the Duolingo, Inc. class action, you must move the Court no later than December 7, 2026. To learn more about your rights, visit the Duolingo, Inc. case page, email [email protected], or call 310-201-9150 (toll-free: 888-773-9224).
You may retain counsel of your choice. If you bought Duolingo, Inc. securities during the class period, you may take no action and remain an absent class member. No class has been certified yet in the Duolingo, Inc. case.
Frequently Asked Questions
Who is eligible? Investors who purchased or otherwise acquired Duolingo, Inc. securities between May 2, 2025 and February 26, 2026 and suffered losses may be members of the proposed class in the Duolingo, Inc. shareholder lawsuit. Any class member may ask the court to appoint them lead plaintiff by December 7, 2026.
What is a lead plaintiff? In the Duolingo, Inc. class action, the lead plaintiff is the investor, or group of investors, that the court appoints to represent all class members and oversee the case. Under the Private Securities Litigation Reform Act, courts generally presume the movant with the largest financial interest is the most adequate lead plaintiff.
Do I have to be lead plaintiff to recover? No. A Duolingo, Inc. investor's ability to share in any future recovery does not depend on serving as lead plaintiff. Duolingo, Inc. investors may take no action and remain absent class members.
What is the deadline? Motions to serve as lead plaintiff in the Duolingo, Inc. class action must be filed by December 7, 2026.
Does it cost anything to contact Glancy or participate in this action? Glancy represents Duolingo, Inc. investors on a contingency fee basis, which means investors pay no attorneys' fees unless there is a recovery. Any fees are subject to court approval and are paid from the recovery.
Can I choose my own lawyer? Yes. Duolingo, Inc. investors may retain counsel of their choice.
Why work with Glancy on the Duolingo, Inc. lawsuit? Glancy Prongay Wolke & Rotter LLP is a premier law firm with decades of experience representing investors and consumers in securities litigation and other complex class action litigation. Contact Glancy about the Duolingo, Inc. lawsuit. Prior results do not guarantee a similar outcome.
About Glancy Prongay Wolke & Rotter LLP
Glancy was named one of Law360's Securities Groups of the Year and ranked second in total investor recoveries by ISS Securities Class Action Services in 2025.
Glancy's successes have been widely covered by leading news and industry publications, including The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron's, Investor's Business Daily, Forbes, and Money.
Prior results do not guarantee a similar outcome.
Related links
- Duolingo, Inc. case page, Glancy Prongay Wolke & Rotter LLP
- Complaint: City of Dearborn Heights Act 345 Police & Fire Retirement System v. Duolingo, Inc. et al., U.S. District Court Western District of Pennsylvania (Pittsburgh)
- Duolingo, Inc. SEC filings index, EDGAR
- Glancy Prongay Wolke & Rotter LLP
Contact
Charles H. Linehan
Glancy Prongay Wolke & Rotter LLP
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Email: [email protected]
Telephone: 310-201-9150 | Toll-free: 888-773-9224
www.glancylaw.com
Follow Glancy on LinkedIn, X, or Facebook.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE Glancy Prongay Wolke & Rotter LLP
Share this article