10 Firms Suffer Amid Optimistic Market Environment

3. AppLovin Corp. (NASDAQ:APP)

AppLovin dropped for a second day on Friday, shedding 5.26 percent to end at $249.95 apiece as investors sold off following a shareholder law firm’s announcement urging shareholders to join a class action lawsuit against the company.

On Thursday, law firm Levi & Korsinsky urged shareholders who lost money between May 10, 2023, and February 25, 2025, from their investments in APP to join the lawsuit alleging APP of reporting dishonest advertising practices.

“According to the complaint, defendants provided investors with material information concerning AppLovin’s financial growth and stability…Moreover, defendants publicly reported impressive financial results, outlooks, and guidance to investors, all while using dishonest advertising practices,” the law firm said.

“The truth emerged on February 26, 2025, when analyst research reports emerged stating that AppLovin was reverse engineering and exploiting advertising data from Meta Platforms. The reports further alleged AppLovin was utilizing manipulative practices to artificially inflate their own ad click-through and app download rates, such as by having ads click on themselves or utilizing design gimmicks to trigger forced shadow downloads, erroneously inflating installation numbers and, in turn, its profit figures,” it claimed.

APP, however, reassured investors of best practices, adding that it hired a law firm to investigate the allegations.