Bumble Inc. (NASDAQ: BMBL) Securities Fraud Class Action

LEAD PLAINTIFF DEADLINE IS NOVEMBER 25, 2024.

If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.

Case Background:
The Class Period begins on November 7, 2023, when Defendants issued a press release announcing the company’s third quarter fiscal year 2023 results for the quarter ended September 30, 2023, and also conducted an earnings call regarding these results.  Therein, Defendants promoted their new “Premium Plus” subscription tier and introduced Lidiane Jones, who Bumble announced would be taking over the role of CEO effective January 2, 2024.  Defendants also provided investors with material information concerning Bumble’s 2023 fiscal year revenue and expected guidance for the fiscal year 2024. These statements included, among other things, confidence in their understanding of the desires in their consumer market, growth in revenue per user on the back of the company’s new elevated subscription tier, and a full app relaunch to integrate features the company claimed would expand their market to more users with a focus on an increase in younger users on their platform.

The truth began to emerge on February 27, 2024, when Bumble issued a press release reporting disappointing fourth quarter 2023 results despite the recent launch of its Premium Plus subscription tier in December 2022. During the subsequent earnings call, Bumble management announced that the Premium Plus tier would be revamped as part of the planned Bumble app relaunch, as it did not have a clear enough market fit at launch. As a result, Bumble lowered its guidance for full year 2024. On this news, the price of Bumble shares declined by $1.95, from $13.18 per share on February 27, 2024, to close at $11.23 per share on February 28, 2024.

Then, on August 7, 2024, Bumble issued a press release announcing mixed second quarter 2024 results. During the earnings call, Bumble disclosed that its app relaunch was not going to plan, and that Bumble would need to reset its outlook to refocus on the consumer ecosystem and rebalance Bumble subscription tiers, including a pause in the revamp of the poorly received Premium Plus tier. On this news, Bumble drastically cut its fiscal year guidance for a second time. As a result, the price of Bumble stock declined by $2.35, from $8.06 per share on August 7, 2024, to close at $5.71 per share on August 8, 2024.

The complaint alleges that, throughout the Class Period, Defendants created the false impression that they possessed reliable information pertaining to Bumble’s consumer market, resulting in Defendants’ confidence that the relaunch of the Bumble app, its associated marketing campaign, and the connected revamp of Bumble’s Premium Plus subscription tier would boost Bumble’s growth through an expanded user base and increased revenue per paid user in the second half of the year.

What is a Lead Plaintiff?

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.