AppLovin Corp.'s stock has fallen 49% over the past three months. The decline began after the company reported a slight miss on second-quarter revenue and earnings in early August.
The results triggered a 20% drop in the stock in one day. Analysts at Wells Fargo, Piper Sandler and Bank of America subsequently downgraded the shares.
Multiple law firms have announced securities fraud class-action lawsuits against AppLovin on behalf of investors. The suits allege the company made false and misleading statements about the development timeline for its generative AI video creative feature and the performance of its AI models between February and August 2026.
The lawsuits follow a legal setback on October 2, when a court denied AppLovin's request for a temporary restraining order against competitor Unity Software over alleged data misuse.