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Published November 7, 2024
Dating app Bumble tries to help its users find love, but investors dumped the stock, which plummeted 29% in August. This messy break-up followed an announcement that Bumble had fumbled the roll-out of its Premium Plus product and a report of bleak financial results. Those investors have now filed a lawsuit against Bumble. According to the lawsuit, in late 2023, Bumble executives announced the app’s higher-priced Premium Plus subscription feature, suggesting that it would be a strong selling point for Bumble users. Bumble’s executives also indicated that they expected increased revenue in 2024, driven in part by Premium Plus. Investors and analysts learned the truth when Bumble later issued a press release announcing disappointing financial results and that users weren’t attracted to Premium Plus. The Company went on to post losses for three quarters in a row, until disgusted investors finally bailed, prompting the August sell-off. Shocked investors are now signing up for the class action lawsuit in hopes of recovering some of their losses.