AppLovin Corporation Investigation Initiated by Former Louisiana Attorney General.

Kahn Swick & Foti, LLC has initiated an investigation into AppLovin Corporation over allegations of ad fraud and manipulative practices that artificially inflated ad click-through and app download rates. The company and certain executives were sued in a securities class action lawsuit, charging them with failing to disclose material information. KSF is investigating whether AppLovin's officers and directors breached their fiduciary duties or violated state or federal laws.

New York City & New Orleans, July 2, 2025 - Kahn Swick & Foti, LLC (KSF), a prominent securities litigation law firm, has announced the initiation of an investigation into AppLovin Corporation (NasdaqGS: APP) over allegations of ad fraud and manipulative practices. The investigation comes on the heels of recent reports highlighting questionable business practices by the company, including reverse engineering and exploiting advertising data from Meta Platforms, and utilizing manipulative tactics to artificially inflate ad click-through and app download rates [1].

The investigation focuses on whether AppLovin's officers and directors breached their fiduciary duties to shareholders or violated state or federal laws. The company has been accused of engaging in practices such as having ads click on themselves or using design gimmicks to trigger forced shadow downloads, thereby erroneously inflating installation numbers and profit figures [1]. Additionally, AppLovin has been reported to have systematically used proprietary third-party data in ways that violated the terms of service of various platforms, potentially leading to backlash and service blocking [1].

The investigation follows a securities class action lawsuit filed against AppLovin and certain executives, charging them with failing to disclose material information. The lawsuit alleges that the company did not adequately inform investors about its questionable practices and the potential risks associated with them [1]. The lawsuit is ongoing and remains a significant concern for investors and financial professionals.

KSF's investigation is not the only recent development involving AppLovin. The company's stock has been volatile, experiencing a 3.51% drop in pre-market trading on August 1, 2025, reflecting the broader volatility often seen in high-growth tech stocks [2]. This volatility has been influenced by various factors, including the company's strong fundamentals, AI innovation, and expansion into e-commerce, as well as the broader tech rally led by advancements in AI and digital advertising [2].

Investors and shareholders who have information that could assist KSF in its investigation or have been long-term holders of AppLovin shares are encouraged to contact the firm toll-free at 1-833-938-0905 or via email (lewis.kahn@ksfcounsel.com) to discuss their legal rights and potential recovery options [1].

References:
[1] https://www.businesswire.com/news/home/20250803607523/en/APPLOVIN-INVESTIGATION-INITIATED-by-Former-Louisiana-Attorney-General-Kahn-Swick-Foti-LLC-Investigates-the-Officers-and-Directors-of-AppLovin-Corporation---APP
[2] https://www.ainvest.com/news/applovin-app-drops-3-51-tech-volatility-2508/