AppLovin reported 53% second-quarter revenue growth as a proposed securities class action alleged that the company misrepresented progress in its AI advertising models and delays to a planned video feature.
Stephen Talbot filed the complaint Sept. 16 in the U.S. District Court for the Northern District of California. It names AppLovin, CEO Adam Foroughi and CFO Matthew Stumpf as defendants. Talbot proposes a class covering people who acquired AppLovin securities from Feb. 12 through Aug. 5, 2026. The docket identifies the case as Talbot v. AppLovin Corporation, No. 3:26-cv-10584.
The filing says investors were not given an accurate picture of how steadily the ad models were advancing or the benefits of those gains. It also alleges the company did not disclose development setbacks affecting a generative AI video creative feature planned for AppLovin Ads. The allegations have not been established in court.
The proposed class period ends Aug. 5, the date of the company’s second-quarter earnings call. Foroughi said on the call, “Our pace of meaningful model improvement was lighter than normal during the quarter.” He said performance improved after quarter-end and identified model performance as a main driver of gaming revenue growth. Foroughi said stronger models can support more advertiser spending as companies pursue their return-on-ad-spend targets.
AppLovin reported $1.923686 billion in revenue for the quarter ended June 30, a 53% increase from a year earlier. That figure was inside the $1.915 billion to $1.945 billion forecast the company issued after the previous quarter, though $6.3 million below the $1.93 billion midpoint.
Levi & Korsinsky’s Oct. 28 investor alert says investors seeking appointment as lead plaintiff must file a motion by Nov. 16. The deadline was also covered in EconoTimes’ earlier report on the lead-plaintiff deadline.
AppLovin plans to release third-quarter results after U.S. markets close Wednesday, Nov. 4, and hold a webinar at 5 p.m. ET.
