Portnoy Law Firm Announces Class Action on Behalf of Duolingo, Inc. Investors

LOS ANGELES, Oct. 14, 2026 (GLOBE NEWSWIRE) — The Portnoy Law Firm advises Duolingo, Inc., (“Duolingo” or the “Company”) (NASDAQ: DUOL) investors of a class action on behalf of investors that bought securities between May 2, 2025 and February 26, 2026, inclusive (the “Class Period”). Duolingo investors have until December 7, 2026 to file a lead plaintiff motion.

Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or join the case via https://portnoylaw.com/duolingo-inc. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.

The class action lawsuit against Duolingo alleges that during the Class Period, defendants issued misleading statements and omitted critical facts regarding the company’s business practices and operational health. Specifically, the complaint claims defendants concealed that: Daily Active User (DAU) expansion was being artificially sustained against introduced user friction—including sharp increases in ad frequency, aggressive subscription upsells, and declining application quality—despite management knowing that friction inevitably prompts user churn; internal A/B testing confirmed that worsening the free-tier experience negatively impacted DAU trends; the deployment of rapidly produced AI content degraded overall product quality, damaging user retention and threatening the viability of financial performance; and ongoing A/B testing demonstrated that aggressive monetization and lower-quality AI content were undercutting both the core app experience and the value proposition of paid subscriptions, rather than driving sustained momentum. The legal action further details a series of disclosures that revealed these underlying issues. On November 5, 2025, Duolingo posted third-quarter financial results showing DAU growth deceleration to 36%—down from 49% in Q1 2025 and 40% in Q2 2025—while executives announced a strategy pivot away from monetization toward user acquisition and core educational quality, causing the stock to drop 25%. Then, on January 12, 2026, the company disclosed the resignation of Chief Financial Officer Matthew Skaruppa and preliminary Q4 2025 metrics showing further DAU growth deceleration to 30%, which drove the stock down an additional 8.5%. Finally, on February 26, 2026, Duolingo reported complete Q4 2025 results, confirming the ongoing DAU slowdown and acknowledging that its strategic shift would cause material negative impacts across 2026 bookings, revenue, DAU growth, and adjusted EBITDA, resulting in a further 14% decline in share price.

The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.

Lesley F. Portnoy, Esq.
Admitted CA, NY and TX Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com

Attorney Advertising

Media gallery