NEW YORK, Jan. 28, 2022 (GLOBE NEWSWIRE) — The law firm Kirby McInerney LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of those who acquired the common stock of Bumble Inc. (“Bumble” or the “Company”) (NASDAQ: BMBL) directly into Bumble’s secondary public offering of shares which took place on or about September 10, 2021 (the “SPO”). Investors have until March 25, 2022 to ask the court to be named lead plaintiff in the lawsuit.
Bumble is an operator of online dating platforms. In September 2021, Bumble conducted a Secondary Public Offering (“SPO”) in September 2021. 20.7 million shares of Class A common stock were sold in the SPO at $54 per share.
On November 10, 2021 after market hours, Bumble announced its third quarter 2021 (“3Q21”) financial results, revealing that, rather than increasing the number of paid users, Bumble’s total number of paid users had actually shrunk to 2.86 million, well below Bumble’s 2.9. million reported paying users as of June 30, 2021, as set forth in the registration statement. On this news, the Company’s stock price fell $9.19 per share, or approximately 19.25%, from $47.75 per share to close at $38.56 per share on November 11. 2021.
As of January 24, 2022, Bumble’s Class A common stock was trading below $27 per share, down more than 50% from the SPO price.
The lawsuit alleges that the SPO’s registration statement misrepresented material facts because they failed to disclose that: (1) Bumble’s paid user growth trends had abruptly reversed in 3Q21 and Bumble had actually lost tens of thousands of paying users during the quarter; (2) paid users had been more reluctant to sign up for the Bumble app during 3Q21 due to recent price increases for paid services on the app; (3) a significant number of paying users were leaving the Badoo App and/or unable to make payments through the Badoo App due, in large part, to issues resulting from Bumble’s transition of its payment platform; and (4) as a result, Bumble’s business metrics and financial outlook were not as strong as the registration statement had represented.
If you have purchased or otherwise acquired Bumble titles, have information, or would like to know more about such claims, please contact Thomas W. Elrod of Kirby McInerney LLP by email to [email protected]or by completing this contact form, to discuss your rights or interests in relation to these matters at no cost to you.
Kirby McInerney LLP is a New York-based law firm specializing in securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm is available on the Kirby McInerney LLP website: http://www.kmllp.com.
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Kirby McInerney LLP
Thomas W. Elrod, Esq.