The complaint, filed by the law firm Robbins LLP, targets Duolingo’s Class A common stock performance between May 2, 2025, and February 26, 2026. According to the filing, the company aggressively pushed ads and upsells to boost revenue while simultaneously deploying AI-generated content that failed to meet historical quality standards. These actions allegedly triggered significant friction for free users, leading to a marked slowdown in daily active user (DAU) growth.
Financial disclosures throughout the class period signaled the depth of these issues. On November 6, 2025, shares plummeted 25% after the company revealed a drop in DAU growth to 36% and announced a pivot away from its monetization-heavy strategy. Further instability followed the January 2026 resignation of CFO Matthew Skaruppa and a subsequent earnings report in February 2026, which projected 2026 DAU growth at only 20%. CEO Luis von Ahn acknowledged that the company had intentionally introduced friction into the user experience, a move executives reportedly knew would discourage user retention.

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