Robbins LLP announced on November 4, 2026, that a securities class action lawsuit has been filed on behalf of purchasers of Duolingo, Inc. (NASDAQ:DUOL) Class A common stock between May 2, 2025 and February 26, 2026, alleging the company misled investors about the quality and sustainability of its product and growth metrics.

Key Highlights

  • Class period defined: The lawsuit covers purchasers of Duolingo Class A common stock from May 2, 2025 through February 26, 2026, inclusive.
  • DAU growth deceleration: Daily active user growth declined from 49% in Q1 2025 to 40% in Q2 2025, to 36% in Q3 2025, and to 30% in preliminary Q4 2025 metrics, according to the complaint.
  • Three stock drops cited: Duolingo stock fell 25% ($66.28 per share) on November 6, 2025; 8.5% ($14.92 per share) on January 12, 2026; and 14% ($16.45 per share) on February 27, 2026, according to the filing.
  • CFO departure: The complaint notes that Duolingo announced the resignation of Chief Financial Officer Matthew Skaruppa on January 12, 2026.
  • 2026 guidance lowered: The company disclosed that its strategy shift would result in "material negative impacts on 2026 bookings, DAU growth rates, revenue, and adjusted EBITDA," with 2026 DAU growth projected at 20%, per the filing.
  • Lead plaintiff deadline: Investors who wish to seek appointment as lead plaintiff must move the court no later than December 7, 2026.

Allegations, Disclosed Stock Declines, and Key Events in the Duolingo Class Action

According to the press release issued by Robbins LLP, the complaint alleges that Duolingo and its executives engaged in a deliberate effort to conceal the negative effects of the company's push to increase monetization of its user base. Specifically, the complaint alleges the company "bombarded" users with "relentless ads, upsells, and other sources of friction," while simultaneously increasing reliance on AI-generated content that was "of worse quality than what the Company historically offered." The filing states that defendants simultaneously assured investors the company was experiencing sustainable growth in metrics such as daily active users and bookings.

The complaint identifies three events it characterizes as partial disclosures during the class period. First, on November 5, 2025, Duolingo reported Q3 2025 results showing DAU growth of 36%, down from 49% in Q1 2025. The company also announced a reversal of its monetization push and stated it would prioritize user growth going forward. Duolingo stock reportedly fell 25%, or $66.28 per share, closing at $193.74 on November 6, 2025. Second, on January 12, 2026, the company announced CFO Matthew Skaruppa's resignation and disclosed preliminary Q4 2025 DAU growth of only 30%, which the filing describes as "nearly six points of additional deceleration." The stock fell 8.5%, or $14.92 per share, closing at $161.74 that day.

Third, after the market closed on February 26, 2026, Duolingo reported Q4 2025 financial results and disclosed that its strategy shift would result in "material negative impacts on 2026 bookings, DAU growth rates, revenue, and adjusted EBITDA." The company stated 2026 DAU growth would come in at 20%. According to the complaint, Duolingo's chief executive also admitted that the company "deliberately introduced 'friction' into the free user experience," which executives knew would cause users to leave the app. The stock fell 14%, or $16.45 per share, closing at $101 per share on February 27, 2026.

What Was Disclosed

Robbins LLP announced a securities class action against Duolingo, Inc. (NASDAQ:DUOL) covering Class A common stock purchasers from May 2, 2025 to February 26, 2026, alleging the company misled investors about user growth sustainability and product quality. The lead plaintiff deadline is December 7, 2026.