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On September 7, 2023, Bumble, operator of online dating and social networking platforms, filed a registration statement for a secondary public stock offering (the “SPO”). The SPO allowed controlling stockholder 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.
On November 10, 2023, Bumble announced its third quarter 2023 financial results and revealed that, rather than growing paying users, Bumble’s paying user number had declined to 2.86 million, well below Bumble’s 2.9 million paying user figure as of June 30, 2023, as reported in the Registration Statement. A lawsuit alleges that the SPO documents failed to disclose the slowdown in Bumble’s paying user growth, as we as other issues with the Company’s dating apps.
As of the date the lawsuit was filed, Bumble Class A common stock traded below $27 per share, a decline of more than 50% from the SPO price.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
[email protected]
Michael Dell‘Angelo, Executive Shareholder
Berger Montague
(215) 875-3080
[email protected]
SOURCE Berger Montague
