A securities class action alleges AppLovin told investors its AI model gains would not slow, and APP shares repriced in two separate sessions, falling $64.13 on July 13, 2026 and another $82.13 on August 6, 2026.

NEW YORK, Sept. 30, 2026 /PRNewswire/ — Levi & Korsinsky, LLP alerts investors in AppLovin Corporation (NASDAQ: APP) that a securities class action has been filed on behalf of shareholders who purchased securities between February 12, 2026 and August 5, 2026. Find out if you may qualify to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

On August 6, 2026, APP shares fell $82.13, or 19.66%, to close at $335.67, roughly $171.31 per share below the July high. To be considered for lead plaintiff, investors must file by November 16, 2026.

Two Trading Sessions That Repriced APP

On July 13, 2026 Bank of America Securities issued a note reporting softer-than-expected e-commerce ad growth for June, observing that “AppLovin’s eCommerce footprint expanded at a slower pace in June” and that weekly data suggested “a muted GA start” after AppLovin Ads opened to all e-commerce advertisers on June 22, 2026. Then on August 5, 2026, the Company reported second quarter revenue of $1.92 billion against consensus estimates of $1.94 billion, in which management stated that the pace of meaningful model improvement was “lighter than normal during the quarter” and that the generative AI video creative tool was “still [a] work in progress.” The lawsuit contends those disclosures corrected earlier statements that improvements to the Company’s AI models were constant and showed no reason to slow down.

The Market Reaction by the Numbers

• July 13, 2026: decline of $64.13 per share, or 12.65%, to a close of $442.85
• August 6, 2026: decline of $82.13 per share, or 19.66%, to a close of $335.67
• Second quarter 2026 revenue of $1.92 billion against a $1.94 billion consensus estimate
• Price target reductions reported on August 6, 2026 included RBC Capital Markets from $700 to $575, Piper Sandler from $665 to $385 with a downgrade to neutral, Wells Fargo from $575 to $357 with a downgrade to equal weight, and Needham from $700 to $500
• Cumulative decline from the July 12, 2026 high of approximately $171.31 per share, or roughly 34%

“The market’s reaction to these two disclosures, and the speed of the Wall Street reassessment that followed, reflects how far the reported slowdown in model improvement sat from what shareholders had been told,” said Joseph E. Levi, Esq. “The complaint alleges investors purchased APP shares at prices that did not account for those risks.”

Submit your information here or call (212) 363-7500.

ABOUT THE FIRM — For over two decades, Levi & Korsinsky has represented shareholders in securities class actions. Ranked in ISS Top 50 for seven consecutive years. Investors who suffered losses have until November 16, 2026 to seek appointment as lead plaintiff.

Frequently Asked Questions About the APP Lawsuit

Q: Who are the defendants named in the APP lawsuit? A: The complaint names AppLovin Corporation and individual defendants including senior executives who signed SEC filings, made public statements, or certified financial disclosures under Sarbanes-Oxley.

Q: How much did APP stock drop? A: Shares fell approximately 19.66%, a decline of $82.13 per share, after the Company disclosed second quarter 2026 revenue of $1.92 billion against a $1.94 billion consensus estimate, that its pace of meaningful AI model improvement was “lighter than normal” for the quarter, and that its generative AI video creative tool remained a work in progress. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.

Q: What court was the APP class action filed in? A: The case was filed in the United States District Court for the Northern District of California, governed by the Private Securities Litigation Reform Act of 1995.

Q: What do APP investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What if I already sold my APP shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys’ fees and expenses subject to court approval.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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SOURCE Levi & Korsinsky, LLP