Duolingo Investors Invited to Join Securities Fraud Lawsuit

Lawsuit covers Duolingo share purchases

SBS, a national shareholder rights litigation firm, said it is reminding investors about a class action lawsuit against Duolingo, Inc. The case alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, which was promulgated by the U.S. Securities and Exchange Commission.

The class period runs from May 2, 2025 to February 26, 2026. Investors who purchased Duolingo shares during that period and suffered a loss are encouraged by SBS to contact the firm about possible lead plaintiff appointments.

According to SBS, becoming the lead plaintiff is not required to participate in any recovery. The firm also says that investors who take no action can remain absent class members.

Complaint alleges misleading market statements

According to the complaint described by SBS, Duolingo made false and misleading statements to the market during the class period. The complaint alleges that the company added sources of user friction, including increased ad volume, while knowing that this friction could negatively affect Daily Active User growth rates.

The complaint also alleges that Duolingo's user experience was harmed by what it describes as shoddy AI-generated content. SBS says the company's public statements were therefore false and materially misleading throughout the class period.

The release says investors suffered damages when the market learned what it describes as the truth about Duolingo. These allegations have not been established as facts in the source material.

What investors need to know

The deadline identified in the release is December 7, 2026. SBS says investors can contact Brian Schall or David Schwartz at Schall, Brown & Schwartz LLP to discuss their rights free of charge. The firm lists its office at 2049 Century Park East, Suite 2460, Los Angeles, California 90067, and provides the telephone number 310-301-3335.

Investors can also contact the firm through www.schallfirm.com or by email at [email protected]. The release says the class has not yet been certified. Until certification occurs, investors are not represented by an attorney, according to SBS.

The announcement means eligible investors have an opportunity to seek information about the case and a possible lead plaintiff role. It does not establish that the allegations are true or guarantee a recovery. SBS describes itself as specializing in securities class action lawsuits and shareholder rights litigation.