AppLovin Retains High-Profile Attorney to Counter Short-Seller Allegations
The ad-tech giant defends its business practices as its stock partially rebounds following a sharp decline tied to accusations of fraud and policy violations.
- AppLovin has hired renowned attorney Alex Spiro to lead an independent investigation into recent short-seller reports alleging fraudulent practices.
- The company's stock recovered 4% on March 28, following a 20% drop the previous day that wiped out $20 billion in market value.
- Muddy Waters' report claims 52% of AppLovin's e-commerce sales come from retargeting, with limited new business growth, and accuses the company of violating app store policies.
- CEO Adam Foroughi refuted the allegations, asserting that AppLovin uses industry-standard practices and accusing short-sellers of spreading misinformation to manipulate the market.
- A securities class action lawsuit has been filed against AppLovin, adding legal challenges to the company's efforts to restore investor confidence.
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