Notice to Pension Funds, Asset Managers, and Fiduciaries: The complaint alleges Duolingo masked how ad-heavy monetization and mass-produced AI lessons were weighing on its growth. Institutional holders may wish to assess their Class Period exposure.

NEW YORK, Oct. 21, 2026 /PRNewswire/ — Levi & Korsinsky, LLP notifies pension funds, asset managers, and other institutional holders of Duolingo, Inc. (NASDAQ: DUOL) that a class action lawsuit has been filed on behalf of shareholders who purchased Duolingo Class A common stock between May 2, 2025 and February 26, 2026. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

Duolingo shares declined approximately 61% from their November 5, 2025 closing price through February 27, 2026, following the disclosures identified in the complaint. The complaint charges that investors suffered billions of dollars in losses, and with more than 40 million Class A shares outstanding, ERISA plan fiduciaries and other institutional investor holders may have concentrated exposure that warrants a securities recovery review. The window to apply for lead plaintiff closes on December 7, 2026.

Portfolio Impact Assessment

The pleading asserts that Duolingo projected sustainable growth to the market. According to the pleading, the Company was at the same time layering unskippable ads, repeated upsells, and deliberate friction onto its free experience while leaning on rapidly generated AI content of lower quality than its historical lessons. As averred, announcements between November 2025 and February 2026, including a pivot away from monetization and a weaker outlook, corrected those representations in stages.

Holders that built positions throughout 2025 may find their losses spread across multiple tranches and accounts.

Fiduciary Obligations and Recovery Options

• Investment committees may wish to compile every Class Period purchase of Duolingo Class A common stock across separately managed accounts, index sleeves, and commingled vehicles.
• ERISA plan fiduciaries may treat the review of potential securities claims as part of acting prudently on behalf of plan participants.
• A lead plaintiff with a substantial loss can help guide litigation strategy and select class counsel, subject to court approval.
• Positions sold after one of the alleged corrective disclosures may still reflect recognizable losses.
• Institutions that do not seek appointment generally remain eligible to share in any recovery as absent class members.

ERISA and Institutional Investor Securities Recovery Considerations

The action is pending in the United States District Court for the Western District of Pennsylvania. It asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.

“Institutional investors play a critical role in securities class actions. That role matters especially here, where the complaint alleges that a growth story told over nearly ten months diverged from what was happening inside the product. Pension funds and asset managers that held Duolingo positions during that period may wish to consider whether active participation would serve their beneficiaries,” said Joseph E. Levi, Esq., managing partner of Levi & Korsinsky, LLP.

Contact us to learn more about institutional recovery options or call (212) 363-7500.

INSTITUTIONAL INVESTOR REPRESENTATION — Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years.

Frequently Asked Questions About the DUOL Lawsuit

Q: When did Duolingo allegedly mislead investors? A: The Class Period runs from May 2, 2025 to February 26, 2026. The complaint alleges that corrective disclosures revealed information that caused a significant stock decline.

Q: What court was the DUOL class action filed in? A: The case was filed in the United States District Court for the Western District of Pennsylvania, governed by the Private Securities Litigation Reform Act of 1995.

Q: Who are the defendants named in the DUOL lawsuit? A: The complaint names Duolingo, Inc. and individual defendants including senior executives who signed SEC filings, made public statements, or certified financial disclosures under Sarbanes-Oxley.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What do DUOL investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.

Q: What if I already sold my DUOL shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor’s country of residence.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, such cases are generally handled on a contingency basis, with any attorneys’ fees and expenses subject to court approval.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@levikorsinsky.com

Tel: (212) 363-7500

Fax: (212) 363-7171

Attorney Advertising. Prior results do not guarantee similar outcomes.

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SOURCE Levi & Korsinsky, LLP