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Published April 11, 2025
Investors didn’t love what they heard when they discovered AppLovin’s new AXON technology was a big fraud. Furious investors threw their AppLovin shares in the trash, sending the Company’s stock price into freefall. Now, some of those investors are fighting back and have filed a class-action against the Company.
In 2023, AppLovin announced AXON 2.0, which it claimed would use “cutting-edge AI technologies” to efficiently match advertisers with mobile games. A year later, the Company claimed AXON was a success and boasted big revenue gains. In fact, AppLovin claimed AXON was set to expand into other sectors like e-commerce.
But the lawsuit says AppLovin’s executives always knew this was a bad romance.
In February 2025, two research reports revealed AppLovin’s success depended on underhanded tactics that installed apps without users’ permission. The Company showed these download figures to advertisers, claiming AXON helped generate user downloads. The reports also said AXON was nothing special – in reality, AppLovin just piggybacked off Meta’s data.
Once investors saw this news, they dumped AppLovin, and the stock price plunged 12% in just a day. Some of those investors are now joining the lawsuit.