APP Shareholder Alert: Shareholder Rights Law Firm Robbins LLP Reminds Investors of the Class Action Lawsuit Against AppLovin Corporation

Shareholder rights law firm Robbins LLP reminds investors that a class action was filed on behalf of persons and entities who purchased or otherwise acquired AppLovin Corporation (NASDAQ: APP) securities between February 12, 2026 and August 5, 2026, inclusive (the Class Period).

AppLovin provides end-to-end artificial intelligence- ("AI") powered advertising solutions for businesses to reach, monetize and grow their global audience. The complaint alleges that AppLovin misled investors regarding the strength of its AI models and feasibility of its AI video creative tool. Investors who suffered significant losses during the Class Period may be eligible to participate in the lawsuit and should contact Robbins LLP for information before the November 16, 2026, lead plaintiff deadline.

Plaintiff alleges that defendants have touted the purported strength of AppLovin's AI models as a major driver of the Company's growth, advising investors that AppLovin was "constantly improving" its models. Defendants described a "virtuous cycle" of improvement and revenue, in which better models yielded greater returns for the Company's advertiser customers, thus incentivizing them to increase their spending on AppLovin's services, and/or incentivizing new customers to begin using AppLovin's services.

On June 22, 2026, AppLovin made a new self-service platform, dubbed AppLovin Ads, available to all customers. Among other features, defendants consistently touted a purportedly forthcoming generative AI video creative tool that would enable customers to create content designed specifically for the AppLovin Ads platform.

According to the complaint, during the Class Period, defendants failed to disclose that: (i) the generative AI video creative feature for the Company's AppLovin Ads platform was subject to significant development delays, making its release on the Company's timeline unlikely; (ii) defendants overstated the constancy with which AppLovin was improving its AI models; (iii) for these reasons, among others, AppLovin had significantly overstated the benefits and reliability of the purportedly "virtuous cycle" and "compounding" value proposition that its AI models provided to customers and to the Company; and (iv) as a result, defendants' public statements were materially false and misleading at all relevant times.

The complaint alleges that on July 13, 2026, a Bank of America Securities analyst published a note reporting softer-than-expected e-commerce ad growth for the month of June, raising concerns over the rollout of AppLovin Ads to all advertisers. Bank of America Securities' review of publicly available e-commerce data showed "AppLovin's eCommerce footprint expanded at a slower pace in June", and the analyst concluded that the AppLovin Ads GA rollout enjoyed only a "muted . . . start." Accordingly, Bank of America Securities lowered its expectations of AppLovin's annual revenue.

Following publication of the note, AppLovin's stock price fell $64.13 per share, or 12.65%, to close at $442.85 per share on July 13, 2026.

Then, on August 5, 2026, AppLovin announced its financial results for the quarter ended June 30, 2026, and held a conference call to discuss the same. Among other items, AppLovin reported revenue of $1.92 billion, below consensus estimates of $1.94 billion. Defendants attributed their quarterly performance to their "pace of meaningful model improvement", which was "lighter than normal during the quarter." Defendants also revealed that their generative AI video tool was "still [a] work in progress." On this news, AppLovin's stock price fell $82.13 per share, or 19.66%, to close at $335.67 per share on August 6, 2026.

The lawsuit seeks to represent investors who purchased or otherwise acquired AppLovin Corporation securities between February 12, ...