Lawsuit filed for Investors in shares of Bumble Inc. (NASDAQ: BMBL)

An investor, who purchased shares of Bumble Inc. (NASDAQ: BMBL), filed a lawsuit over alleged violations of Federal Securities Laws by Bumble Inc.

Investors who purchased shares of Bumble Inc. (NASDAQ: BMBL) have certain options and for certain investors are short and strict deadlines running. Deadline: March 25, 2022. NASDAQ: BMBL investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Austin, TX based Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally.
In February 2021, the controlling shareholder of Bumble Inc. took Bumble Inc. public through an initial public offering (“IPO”) in which Bumble Inc. raised more than $2.4 billion from investors in gross offering proceedings.

The plaintiff alleges that following its IPO, Bumble Inc. claimed that it was experiencing significant growth in its paying user count.

The plaintiff claims that, unbeknownst to investors, during the third quarter of 2021 (“3Q21”), ending September 30, 2021, Bumble’s previous favorable paying user growth trend had abruptly reversed.

On or about September 10, 2021, just days before the end of its 3Q21, Bumble Inc. undertook another registered public stock offering (“SPO”) – allowing Bumble’s controlling shareholder (Blackstone Group Inc) to sell 20.7 million shares of Bumble Class A common stock at $54 per share, generating more than $1.1 billion in gross proceeds.

Then, on November 10, 2021, Bumble Inc. announced its 3Q21 financial results, disclosing that, rather than growing paying users, Bumble’s total paying user count had actually declined to 2.86 million, well below Bumble’s 2.9 million reported paying users as of June 30, 2021 as highlighted in the registration statement.

Shares of Bumble Inc. (NASDAQ: BMBL) declined to as low as $26.42 per share on January 24, 2022.
The plaintiff alleges on behalf of purchasers of Bumble Inc. (NASDAQ: BMBL) common shares, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that SPO’s registration statement contained inaccurate statements of material fact because they failed to disclose that Bumble’s paying user growth trends had abruptly reversed in 3Q21 and Bumble had actually lost tens of thousands of paying users during the quarter, that paying users had been more reluctant to sign up for the Bumble app during 3Q21 because of the recent price hike for paid services on the app, that a material number of paying users were leaving the Badoo app and/or could not make payments through the Badoo app due, in substantial part, to problems arising from Bumble’s transition of its payment platform, and that as a result, Bumble’s business metrics and financial prospects were not as strong as the registration statement had represented.

Those who purchased shares of Bumble Inc. (NASDAQ: BMBL) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.