Bumble Inc.

On February 27, 2024, Bumble released its fourth quarter 2023 financial results, falling short of expectations. The Company stated that the recently-launched Premium Plus subscription tier would be revamped as part of a planned Bumble app relaunch, as it “did not have a clear enough market fit” at launch. Additionally, the Company lowered its guidance for 2024.

On this news, Bumble’s stock price fell $1.95, or 14.8%, to close at $11.23 per share on February 28, 2024, thereby injuring investors.

Then, on August 7, 2024, Bumble released its second quarter 2024 financial results, disclosing that the app relaunch was not going to plan and that the Company would need to “reset” its outlook to refocus on the “consumer ecosystem” and “rebalance Bumble subscription tiers,” including a pause in the revamp of the Premium Plus tier. The Company also cut its full year 2024 guidance for a second time.

On this news, Bumble’s stock price fell $2.35, or 29.2%, to close at $5.71 per share on August 8, 2024, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Bumble’s Premium Plus subscription plan did not have a clear market fit and would very quickly need to be revamped; (2) Bumble’s tiered-subscription options were ill equipped to provide the claimed revenue per user benefit to the Company’s faltering market share, particularly regarding user growth and monetization; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.