SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that it has filed a class action lawsuit today seeking to represent purchasers of Bumble Inc. (NASDAQ: BMBL) Class A common stock directly in Bumble’s secondary public stock offering which took place on or about September 10, 2021 (the “SPO”). Commenced on January 24, 2022, the Bumble class action lawsuit – captioned UA Local 13 Pension Fund v. Bumble Inc., No. 22-cv-00624 (S.D.N.Y.) – charges Bumble, certain of its top executives and directors, the underwriters of the SPO, and Blackstone Group Inc. (“Blackstone”) with violations of the Securities Act of 1933.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud. You can view a copy of the complaint by clicking here.
If you suffered significant losses and wish to serve as lead plaintiff of the Bumble class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the Bumble class action lawsuit must be filed with the court no later than March 25, 2022.
CASE ALLEGATIONS: Bumble is an operator of two online dating platforms: (i) the Bumble app; and (ii) the Badoo app. In February 2021, controlling shareholder defendant Blackstone took Bumble public through an initial public offering in which Bumble raised more than $2.4 billion from investors in gross offering proceedings (the “IPO”). Following its IPO, Bumble claimed that it was experiencing significant growth in its paying user count.
The Bumble class action lawsuit alleges, unbeknownst to investors, during the third quarter of 2021 (“3Q21”), ending September 30, 2021, Bumble’s previous favorable paying user growth trend had abruptly reversed. Despite these adverse facts, on or about September 10, 2021, just days before the end of its 3Q21, Bumble undertook another registered public stock offering without disclosing the problems plaguing its dating apps or the abrupt slowdown in Bumble’s paying user growth – allowing Blackstone to sell 20.7 million shares of Bumble Class A common stock at $54 per share, generating more than $1.1 billion in gross proceeds.
Specifically, the Bumble class action lawsuit alleges that the SPO’s registration statement contained inaccurate statements of material fact because they failed to disclose that: (i) Bumble’s paying user growth trends had abruptly reversed in 3Q21 and Bumble had actually lost tens of thousands of paying users during the quarter; (ii) paying users had been more reluctant to sign up for the Bumble app during 3Q21 because of the recent price hike for paid services on the app; (iii) a material number of paying users were leaving the Badoo app and/or could not make payments through the Badoo app due, in substantial part, to problems arising from Bumble’s transition of its payment platform; and (iv) as a result, Bumble’s business metrics and financial prospects were not as strong as the registration statement had represented.
On November 10, 2021, Bumble announced its 3Q21 financial results, disclosing that, rather than growing paying users, Bumble’s total paying user count had actually declined to 2.86 million, well below Bumble’s 2.9 million reported paying users as of June 30, 2021 as highlighted in the registration statement. Subsequent to the SPO, the price of Bumble Class A common stock declined substantially. By January 24, 2022, Bumble Class A common stock traded below $27 per share, a decline of more than 50% from the SPO price.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Bumble Class A common stock directly in the SPO to seek appointment as lead plaintiff in the Bumble class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Bumble class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Bumble class action lawsuit. An investor’s ability to share in any potential future recovery of the Bumble class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors that year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit http://www.rgrdlaw.com for more information.
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