Bumble (BMBL) Investor Lawsuit Over Misleading Statements

W.D. Texas

Court

1:24-cv-01131

Case number

07 Nov 2023

Class period Start

07 Aug 2024

Class period End

25 Nov 2024

Lead Plaintiff motion deadline

$BMBL stockholders filed a claim against Bumble, alleging that the company made misleading statements about the success of its app relaunch and the performance of its Premium Plus subscription tier. These misrepresentations impacted the company’s financial performance and led to inaccurate 2024 guidance, ultimately causing financial losses for investors.
On February 27, 2024, Bumble reported disappointing financial results, causing its stock to drop nearly 15%.
On February 27, 2024, Bumble reported weaker-than-expected financial results for the fourth quarter of 2023. The company revealed that its recently launched Premium Plus subscription tier did not meet market expectations and would need to be completely revamped. Following this announcement, Bumble’s stock price fell from $13.18 per share to $11.23 per share the next day, a nearly 15% decline.

Bumble also lowered its full-year 2024 guidance due to the poor performance of the subscription tier, which affected its projected revenue growth.

Bumble had previously promoted the Premium Plus subscription tier as a key growth driver, promising investors it would significantly boost the company’s user base and revenue.

However, Bumble encountered major challenges with the product, which failed to resonate with users. Despite these internal issues, Bumble continued to provide positive projections without disclosing the problems.

On August 7, 2024, Bumble further disclosed mixed second-quarter results, stating that the relaunch of its app was not going as planned and that the Premium Plus tier would need to be paused and reworked. This news led to another significant stock price drop from $8.06 per share to $5.71 per share, a decline of over 29%.

Based on these events, $BMBL stockholders filed a claim against Bumble and its leadership, accusing them of the following:
Misleading investors about the performance and market reception of the Premium Plus subscription.
Providing unrealistic user growth and revenue projections based on flawed product expectations.
Failing to disclose significant challenges with the app relaunch that impacted the company’s financial outlook
Considering these issues, investors have reason to believe that Bumble misled them about its financial health and product performance, affecting the company’s stock value.

One of Bumble’s investors has already filed a claim against Bumble in the Western District of Texas court.

Case Status

Lead Plaintiff Submission

Alleged Offence

Misleading Statements,

Failure to Disclose

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

07 August 2024

Filing date

24 September 2024

Lead Plaintiff Deadline

25 November 2024

Judge

Robert Pitman

Bumble (BMBL) Investor Lawsuit Over Misleading Statements

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