Duolingo Faces Securities Fraud Lawsuit Filed by Rosen Law Firm

Rosen Law Firm, an international investor rights law firm, has announced a class action lawsuit against Duolingo, Inc. (NASDAQ: DUOL). The suit is on behalf of purchasers of the company's Class A common stock during the period from May 2, 2025, to February 26, 2026. Investors who wish to pursue a lead plaintiff role must file with the court by December 7, 2026.

The core of the lawsuit alleges that Duolingo misled investors by making materially false or misleading statements and failing to disclose critical information. Specifically, the complaint claims that the company artificially boosted its daily active user (DAU) growth rates by increasing ad volume, pushing subscription upsells, and degrading the overall product experience. This friction was allegedly implemented despite internal testing that indicated negative impacts on user engagement and growth.

Further allegations suggest that Duolingo's rapid generation of AI content worsened the product's quality and user experience, potentially jeopardizing the sustainability of its financial performance. The lawsuit contends that the company's management was aware that its monetization strategies and lower-quality content were degrading the user experience and the value proposition of its subscription tiers, contrary to public statements about product improvements driving retention.

Investors who purchased Duolingo Class A common stock during the specified Class Period may be entitled to compensation without incurring out-of-pocket costs, provided they meet the criteria for the class action. Rosen Law Firm encourages potential class members to seek further information regarding their rights and options.