Home Social networking Shareholder Alert: Robbins LLP reminds investors that Bumble Inc. (BMBL) is being sued for misleading shareholders

Shareholder Alert: Robbins LLP reminds investors that Bumble Inc. (BMBL) is being sued for misleading shareholders

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SAN DIEGO–(BUSINESS WIRE)–Law firm in shareholder law Robbins LLP reminds investors that a shareholder has filed a class action lawsuit on behalf of all purchasers of Class A common stock of Bumble Inc. (NASDAQ: BMBL) directly in connection with Bumble’s Secondary Public Offering (“SPO”) ), for violation of the Securities Act of 1933. Bumble operates online dating and social networking platforms in North America, Europe and around the world.

If you have suffered a loss due to the misconduct of Bumble Inc., click here.

Bumble Inc. (BMBL) misrepresented its paying users in its registration statement supporting its SPO

According to the complaint, Bumble went public through an initial public offering (“IPO”) in February 2021. Following the IPO, Bumble claimed that it was experiencing significant growth in its user base. payers, reporting 42 million “average monthly users”, 2.93 of whom were “paying users” as of June 30, 2021. However, during the third quarter of 2021, ending September 30, 2021, the growth trend of the company’s paying users abruptly reversed, with Bumble losing over 60,000 paying users.

Despite these adverse facts, on September 10, 2021, Bumble undertook an SPO without disclosing the issues its apps were facing or the slowdown in the growth of its number of paying users. The SPO allowed majority shareholder Blackstone to sell 20.7 million shares of Class A common stock of Bumble at $54 per share, raising more than $1.1 billion in gross proceeds.

However, defendants negligently prepared the registration statement supporting the SPO and it did not disclose that Bumble’s paid user growth trends had abruptly reversed in the third quarter of 2021 and that the company had in fact lost tens of thousands of paying users in the quarter. Additionally, paid users were reluctant to sign up for the Bumble app during this time due to the recent price hike for paid services on the app. Additionally, paying users were leaving the company’s Badoo app and/or unable to make payments due to issues resulting from the transition of the company’s payment platform.

On November 10, 2021, Bumble announced its third quarter 2021 financial results, revealing that its total number of paid users had fallen to 2.86 million, well below the 2.9 million paid users reported by the company. prominently in the registration statement. As a result of the SPO, the price of Bumble’s Class A common stock fell significantly.

If you purchased shares of Bumble Inc. (BMBL) in the company’s September 10, 2021 SPO, you have until March 25, 2022 to ask the court to name you as lead class plaintiff.

All representation is done on a contingent fee basis. Shareholders do not pay any fees or expenses.

Contact us for more information:

Aaron Dumas

(800) 350-6003

[email protected]

Shareholder Information Form

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP are dedicated to helping shareholders recoup losses, improving corporate governance structures and holding corporate executives responsible for their wrongdoings since 2002. To be notified if a class action lawsuit against Bumble Inc. settles or to receive free alerts when corporate executives commit wrongdoing, sign up for Watch Inventory today.

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