NEW YORK — Shareholders of Bumble Inc. (NASDAQ: BMBL) have been alerted to potential legal action amid allegations that the company misled investors, according to a recent notice issued by The Gross Law Firm. The law firm is reaching out to investors who acquired Bumble shares during the specified period, inviting them to discuss the possibility of being appointed as lead plaintiff in a class action lawsuit. This appointment, however, is not mandatory for participating in any potential financial recovery arising from the case.
The class action suit pertains to investments made between November 7, 2023, and August 7, 2024. During this time, Bumble executives are accused of making overly optimistic statements while simultaneously failing to disclose key adverse facts about the dating service provider’s operations, specifically concerning its relaunch strategy initiatives like Premium Plus and other subscription tiers aimed at boosting user engagement and delivering personalized experiences.
The unfolding of the alleged misinformation began to surface when Bumble reported disappointing fiscal results for the fourth quarter of 2023 on February 27, 2024, countering earlier positive projections following the introduction of the Premium Plus subscription tier in December 2022. These results led to a significant drop in stock prices, with shares falling from $13.18 to $11.23 the following day.
The situation compounded on August 7, 2024, with Bumble’s announcement of underwhelming performance for the second quarter and a consequent adjustment in their operational forecasts for the full year. During an earnings call, it was revealed that the planned app revamp was struggling, prompting management to call for a “reset” in strategy concerning their consumer ecosystem and subscription models, particularly the poorly received Premium Plus tier. Following this news, the company’s shares took a further dip, plummeting from $8.06 to $5.71 per share.
Investors interested in participating in the lawsuit or acquiring further information have until November 25, 2024, to register. The Gross Law Firm is facilitating this process, deploying portfolio monitoring software to keep registered shareholders informed about developments throughout the lawsuit.
The Gross Law Firm, recognized nationally for its proficiency in class action lawsuits, commits itself to defending investor rights against corporate malpractices such as deceit and fraud. It strives to ensure responsible business conduct and proper corporate governance, seeking restitution for investors who suffer financial damages due to misleading statements by companies or the omission of significant information.
For more information or assistance, interested parties are encouraged to contact The Gross Law Firm, located at 15 West 38th Street, 12th floor, New York, NY, 10018, either via email or by calling (646) 453-8903.
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