NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Bumble Inc. (“Bumble” or the “Company”) (NASDAQ: BMBL) pursuant and/or traceable to the Registration Statement issued in connection with the Company’s September 2021 secondary public offering (the “SPO”). Investors have until March 25, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Bumble is an operator of online dating platforms. In its SPO, Bumble sold 20.7 million shares of Class A common stock at $54 per share.
On November 10, 2021 after-market hours, Bumble announced its third quarter of 2021 (“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 SPO registration statement. On this news, the Company’s stock price declined by $9.19 per share, or approximately 19.25%, from $47.75 per share to close at $38.56 per share on November 11, 2021.
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 lawsuit alleges that the SPO’s registration statement contained inaccurate statements of material fact because Defendants failed to disclose that: (1) 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; (2) 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; (3) 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 (4) as a result, Bumble’s business metrics and financial prospects were not as strong as the registration statement had represented.
If you purchased or otherwise acquired Bumble securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
