Bumble Inc.

Bumble conducted its Secondary Public Offering (“SPO”) in September 2021. 20.7 million shares of Class A common stock were sold in the SPO at $54 per share.

On November 10, 2021, Bumble announced its financial results for the third quarter of 2021, revealing that the Company’s total paying user count had declined to 2.86 million, well below the 2.9 million users reported in the SPO registration statement.

On this news, Bumble’s share price fell $9.19, or 19.2%, to close at $38.56 per share on November 11, 2021, injuring investors. By January 25, 2022, Bumble shares have traded below $27 per share, less than half of the original SPO price.

The complaint filed in this class action alleges that the SPO registration statement made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) 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; (2) 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; (3) 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 (4) as a result, Bumble’s business metrics and financial prospects were not as strong as the registration statement had represented.