Kessler Topaz Meltzer & Check, LLP (www.ktmc.com), a nationally recognized securities litigation law firm, informs investors that a securities fraud class action lawsuit has been filed against Duolingo, Inc. (Duolingo) (NASDAQ: DUOL) on behalf of those who purchased or acquired Duolingo Class A common stock between May 2, 2025 and February 26, 2026, inclusive. The lawsuit is filed in the United States District Court for the Western District of Pennsylvania and is captioned City of Dearborn Heights Act 345 Police & Fire Retirement System v. Duolingo, Inc., No. 26-cv-02197 (W.D. Pa.). Investors have until December 7, 2026, to file for lead plaintiff status.
CONTACT KESSLER TOPAZ TO DISCUSS YOUR LEGAL RIGHTS:
If you purchased or acquired Duolingo Class A common stock and have lost money on your investment, please provide your information here: https://www.ktmc.com/duol-duolingo-inc-class-action-lawsuit?utm_source=Businesswire&utm_medium=pressrelease&utm_campaign=duol&mktm=PR
You can also contact attorney Jonathan Naji, Esq. by calling (484) 270-1453 or by email at info@ktmc.com. There is no cost or obligation to speak with an attorney.
DUOLINGO, INC. CLASS ACTION LAWSUIT – COMPLAINT ALLEGATION SUMMARY:
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material facts about the company’s business, operations, and prospects. Specifically, Defendants misrepresented and/or 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 Duolingo 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 the company that increased friction in the free user experience, including its monetization push and rapidly generated low-quality AI content, 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 the company’s financial performance; and (4) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Why did Duolingo’s Stock Drop?
On November 5, 2025, Duolingo reported its third quarter financial results, revealing a decline in DAU growth to 36%, down from 49% in the first quarter. Duolingo also revealed that the company would reverse course on its monetization push and instead focus on user growth going forward. On this news, Duolingo’s stock price fell 25%, to close at $193.74 on November 6, 2025.
Then, on January 12, 2026, Duolingo announced that its CFO had resigned. Duolingo also provided limited preliminary fourth quarter operating metrics, showing DAU growth of only 30%. On this news, Duolingo’s stock price fell another 8.5%, to close at $161.74 on January 12, 2026.
Finally, after the market closed on February 26, 2026, Duolingo announced its fourth quarter financial results, confirming the slowed DAU growth and revealing that the “small financial impact” from its strategic shift was anything but. Specifically, Duolingo revealed that its 2026 DAU growth would come in at a meager 20% and be accompanied by lower bookings and less profitability. On this news, Duolingo’s stock price fell 14%, to close at $101 on February 27, 2026.
WHAT DUOLINGO, INC. INVESTORS CAN DO NOW:
- File to be lead plaintiff by December 7, 2026.
- Contact Kessler Topaz for a free case evaluation. All representation is on a contingency fee basis, there is no cost to you.
- Retain counsel of choice or take no action.
THE LEAD PLAINTIFF PROCESS FOR DUOLINGO, INC. INVESTORS:
Duolingo investors have the opportunity to lead the lawsuit. Such investors may, no later than December 7, 2026, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP encourages Duolingo investors to contact the firm for more information.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. Kessler Topaz has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including being recognized in Chambers & Partners USA 2026 as a Band 1 Top Firm in Securities and Class Actions, Legal 500’s Tier 1 Rankings for Securities and M&A Litigation, The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs’ Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. Kessler Topaz has recovered over $25 billion for our clients and the classes they represent. The complaint in this matter was not filed by Kessler Topaz.
May be considered attorney advertising in certain jurisdictions. Past results do not guarantee future outcomes.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261009087950/en/
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