AppLovin Corporation (APP) Market Value Craters $20 Billion On March 27 After Muddy Waters Takes Aim, Class Action Pending – Hagens Berman

Core Viewpoint - AppLovin's stock price dropped significantly after Muddy Waters Research disclosed a short position, resulting in a loss of approximately $20 billion in market value [1] Group 1: Legal and Regulatory Developments - A securities class action lawsuit has been filed against AppLovin, representing investors who purchased shares between May 10, 2023, and February 25, 2025 [2][3] - The lawsuit alleges that AppLovin made false and misleading statements regarding its AXON 2.0 digital advertising platform, which was heavily promoted as a revolutionary product [4] - The lead plaintiff deadline for the class action is set for May 5, 2025 [3] Group 2: Allegations and Criticisms - Muddy Waters' report claims that AppLovin's e-commerce strategy relies heavily on retargeting, with low incrementality, and that it violates third-party platforms' terms of service [4] - Fuzzy Panda Research and Culper Research have raised concerns about AppLovin's ethical practices and the legitimacy of its growth, suggesting that the company misled investors about its platform's capabilities [5][6] - Allegations include exploiting user data, potential bans from app stores, and systematic violations of terms of service through questionable advertising practices [7][8]