CITY OF DEARBORN HEIGHTS ACT 345 POLICE & FIRE RETIREMENT SYSTEM v. DUOLINGO, INC.

What this case is about

Investors are suing Duolingo, the popular language-learning app company, claiming that the company and its executives misled shareholders about the health and sustainability of its business. The plaintiffs allege that Duolingo made false or misleading statements about key metrics driving its growth, including user engagement and the performance of its subscription business, which artificially inflated the company's stock price. When the true state of the business was eventually revealed, the stock price dropped sharply, causing financial harm to investors. The proposed class includes people who purchased Duolingo securities during a specific period when the company was allegedly making these misleading statements, and who suffered losses when the stock declined after the truth came to light.

What happens next

The case is in its earliest stage. The defendant has not yet responded. Class certification — the court's decision on whether the case can proceed as a class action — typically takes 12 to 24 months after filing.

Source: CourtListener docket entry. This summary was generated automatically and may not reflect subsequent filings.