Lawsuit Highlights Discrepancy in Duolingo's User Growth Claims

Law firm Levi & Korsinsky, LLP is drawing attention to a class action lawsuit filed against Duolingo, Inc. (NASDAQ: DUOL), alleging securities fraud. The action was initiated on behalf of investors who purchased Duolingo stock between May 2, 2025, and February 26, 2026.

The lawsuit contends that Duolingo made materially false or misleading statements regarding the sustainability of its daily active user (DAU) growth, the impact of its monetization strategies, and the quality of its AI-generated lessons. The company had described a 49% user growth rate in May 2025 as "meaningful growth at scale." However, the complaint alleges that by February 2026, Duolingo was forecasting only 20% DAU growth for the year.

Investors experienced significant financial losses. Duolingo's stock price fell from $260.02 on November 5, 2025, to $101.00 on February 27, 2026, representing a 61.16% decline. The law firm asserts that the company's own internal testing indicated that increased ad loads, aggressive upsells, and lower-quality AI lessons were negatively affecting user growth even as executives promoted rapid expansion.

The deadline for investors to seek appointment as lead plaintiff in the class action is December 7, 2026. Levi & Korsinsky encourages investors who believe they may have suffered losses to contact them for further information regarding the litigation.