Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Duolingo, Inc. (DUOL)

NEW YORK, Oct. 08, 2026 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Western District of Pennsylvania on behalf of all persons or entities who purchased or otherwise acquired Duolingo, Inc. (“Duolingo” or the “Company”) (NASDAQ: DUOL) securities between May 2, 2025 and February 26, 2026, inclusive (the “Class Period”).

The Complaint alleges that Duolingo pushed to monetize more users while inundating them with ads, poor-quality, rapidly generated AI content, and overall friction, Duolingo experienced deceleration in one of its key financial metrics and performance indicators: DAU. The Complaint alleges that despite closely following DAU trends through extensive data, Defendants assured investors the Company was on sound footing, experiencing sustainable growth with high-quality learning programs, and that it was adequately investing in long-term growth. The Complaint alleges for example, after reporting its second quarter (“2Q”) 2025 financial results, when DAU growth decelerated from 49% in 1Q 2025 to 40%, von Ahn attributed the DAU slowdown solely to the AI-memo backlash but assured investors “that impact is in the past.”

The Complaint also alleges that Duolingo’s true state of affairs came out in three partial Class Period disclosures. The Complaint alleges that first, on November 5, 2025, the Company reported its third quarter (“3Q”) financial results, revealing another sequential decline in DAU growth to 36%, a substantial drop from 49% in 1Q 2025 and 40% during 2Q 2025. The Complaint continues to allege that Defendants revealed a reversal of the Company’s monetization push and stated that going forward, the Company would prioritize user growth over monetization and that the Company needed to invest more in “teaching better across all our subjects.”

The Complaint further alleges that in response, the price of Duolingo stock dropped sharply, falling 25%, or $66.28 per share, to close at $193.74 on November 6, 2025. The Complaint continues to allege that despite the steep decline, the price of Duolingo stock remained artificially inflated, as Defendants assured investors the strategy shift would only “shift the balance a little bit more towards user growth,” resulting in “a change of small proportion” and a “relatively small financial impact from this kind of reprioritization,” omitting that the shift was indeed a significant change and that Duolingo expected to see ongoing, material declines in DAU, bookings, revenues, and its financial outlook.

The Complaint alleges that on January 12, 2026, Duolingo announced that its Chief Financial Officer (“CFO”), Matthew Skaruppa (“Skaruppa”), had resigned. The Complaint alleges that the Company also provided limited, preliminary fourth quarter (“4Q”) 2025 operating metrics, shocking investors by revealing DAU growth of only 30% – nearly six points of additional deceleration from 3Q 2025. The Complaint alleges that in response, Duolingo stock fell another 8.5%, or $14.92 per share, to close at $161.74 on January 12, 2026.

Investors who purchased or otherwise acquired shares of Duolingo should contact the Firm prior to the December 7, 2026 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.