New York, October 22, 2026 / PRNewswire / -- Pomerantz LLP announces that a class action has been filed against AppLovin Corporation ("AppLovin" or "the Company", NASDAQ : APP) and certain of its senior executives.

This class action has been filed with the United States District Court for the Northern District of California, with the case number 26- cv-10584. The group represented by the lawsuit includes all individuals and entities that purchased or otherwise acquired AppLovin securities between February 12, 2026, and August 5, 2026 (including both start and end dates, hereinafter referred to as the "class action period"), except for the defendants. The lawsuit aims to recover losses allegedly caused by the defendants' violations of federal securities laws, and seeks relief from the company and certain of its executives in accordance with Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as Section 10b-5 thereof.

If you are an investor who purchased or acquired AppLovin securities during the class action period, you may request the court to appoint you as the lead plaintiff for the class before November 16, 2026. Copies of the complaint are available at www.pomerantzlaw.com. For discussions regarding this case, please contact Danielle Peyton at the email address [email protected] and by phone at 646-581-9980 (or toll-free at 888.4-POMLAW ext. 7980). Those consulting via email are advised to attach their mailing address, phone number, and the quantity of shares they purchased.

AppLovin provides end-to-end artificial intelligence (AI) driven advertising solutions for enterprises to help them reach, monetize, and expand their global audience. Specifically, AppLovin's advertising solutions are said to utilize AI models to more efficiently match advertisements with potential consumers and assist company clients in achieving their advertising goals, including acquiring relevant targets.

The complaint alleges that, throughout the relevant period, the defendant consistently promoted the so-called strong performance of the AppLovin AI model as the main driving force for company growth, and informed investors that AppLovin was continuously 'improving' its model. The defendant described a 'virtuous cycle' of improvement and revenue generation: a better model brought higher returns to advertisers, which in turn motivated them to increase their spending on AppLovin services, and/or encouraged new customers to start using AppLovin services. More participation from existing and/or new customers provided additional data for AppLovin, enabling the company to further improve its AI model. During the class-action lawsuit, the defendant told investors that they had seen 'faster improvements' in the model and stated, 'We actually see no reason for this situation to slow down.'

Prior to the class-action period, AppLovin had already launched a self-service platform for some customers. On June 22, 2026, AppLovin made this platform, named AppLovin Ads, available to all customers. In addition to other features, the defendant also continuously promoted an upcoming generative AI video creation tool, claiming that this tool would enable customers to create content designed specifically for the AppLovin Ads platform.

The complaint alleges that throughout the class action period, the defendant made material false and misleading statements regarding the company's business, operations, and prospects. Specifically, the defendant made false and/or misleading statements, and/or failed to disclose the following facts: (i) there were significant delays in the development of the generative AI video creation feature on the company's AppLovin Ads platform, making it unlikely to be released according to the company's timeline; (ii) the defendant exaggerated the stability of AppLovin's continuous improvement of its AI model; (iii) for these and other reasons, the defendant significantly overstated the benefits and reliability of the so-called "virtuous cycle" and "compound interest" value proposition that AI's model brought to customers and the company; (iv) therefore, the defendant's public statements constituted material falsehoods and misrepresentations during all relevant periods.

The complaint alleges that the truth began to emerge on July 13, 2026. On that day, an analyst from Bank of America Securities ( Bank of America Securities ) issued a report stating that e-commerce advertising growth in June was weaker than expected, and expressed concerns about the progress of AppLovin Ads's full rollout to all advertisers. Bank of America Securities' review of publicly available e-commerce data revealed that "the coverage of AppLovin's e-commerce business expanded at a slower pace in June." Based on this, the analyst concluded that the full availability of AppLovin Ads ( general availability , referred to as " GA ") had only had a "mild... start." Therefore, due to the "slow initial ramp-up of GA," Bank of America Securities lowered its forecast for AppLovin's annual revenue.

After the release of that report, the stock price of AppLovin fell by $64.13 per share on July 13, 2026, a decrease of 12.65%, closing at $442.85 per share.

Subsequently, on August 5, 2026, AppLovin issued a press release announcing its financial results for the quarter ending June 30, 2026, and held a teleconference to discuss the relevant matters. Among other things, AppLovin reported revenue of $1.92 billion, which was lower than the market's consensus forecast of $1.94 billion. The defendant attributed the quarterly performance to its "significant speed of model improvement," stating that this speed was "below normal levels this quarter." The defendant also disclosed that its generative AI video tool is "still in development."

Affected by this news, the stock price of AppLovin fell by $82.13 per share on August 6, 2026, a decrease of 19.66%, closing at $335.67 per share.

Pomerantz LLP has offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, and is considered one of the top law firms in the fields of corporate, securities, and antitrust class actions. The firm was founded by the late Abraham L Pomerantz, who is regarded as a pioneer in the field of class action litigation. Pomerantz has made groundbreaking contributions to the field of securities class actions. Today, more than 85 years later, Pomerantz continues to uphold the traditions established by its founder, fighting for the rights of victims of securities fraud, breach of fiduciary duty, and corporate misconduct. The firm claims to have recovered billions of dollars in compensation on behalf of class members. For more details, please refer to www.pomlaw.com.

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