Bumble Inc.'s officers and board of directors made false or misleading statements projecting revenue growth from adding new features to the dating app, a shareholder alleges in a lawsuit Tuesday.
The statements from Bumble founder Whitney Wolfe Herd and others caused an investor, Carmela Harnum, to purchase stock “at prices that were artificially inflated,” the lawsuit alleges.
Harnum, represented by Kendall Law Group PLLC and Rosen Law Firm PA, filed the suit in the US District Court for the Western District of Texas on Tuesday.
Her lawsuit follows at least two others Bumble investors have brought for the alleged misstatements in the last three months.
In 2023, Bumble introduced two new subscription tiers aimed at elevating users’ experience. Then, in early 2024, it announced it would be relaunching its app geared toward capturing a broader audience. During this time, Wolfe Herd and the board repeatedly informed the investing public that these changes would result in revenue growth, the suit says.
“However, the truth began to emerge on February 27, 2024, when the company reported disappointing financial results for the fourth quarter of 2023 and decreased its guidance for 2024,” the lawsuit said. “On this news, Bumble’s stock price declined from $13.18 per share on February 27, 2024 to $11.23 per share on February 28, 2024.”
The stock tumbled again, from $8.06 per share to $5.71 per share on Aug. 8, after the company reported financial results for the second quarter of 2024, the suit says.
Bumble didn’t respond to request for comment Tuesday.
The case is Harnum v. Wolfe Herd, W.D. Tex., No. 1:24-cv-01540, 12/17/24.
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