Shareholder Alert: Robbins LLP Reminds Investors that Bumble Inc. (BMBL) is Being Sued for Misleading Shareholders

SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP reminds investors that a shareholder filed a class action on behalf of all purchasers of Class A common stock of Bumble Inc. (NASDAQ:BMBL) directly in Bumble's secondary public offering ("SPO"), for violations of the Securities Act of 1933. Bumble operates online dating and social networking platforms in North America, Europe, and internationally.

If you suffered a loss due to Bumble Inc.'s misconduct, click here.

Bumble Inc. (BMBL) Misstated its Paying Users in its Registration Statement Supporting its SPO

According to the complaint, Bumble went public through an initial public offering ("IPO") in February 2021. Following the IPO, Bumble claimed it was experiencing significant growth in its payer user count, reporting 42 million "average monthly users," 2.93 of which were "paying users" as of June 30, 2021. However, during the third quarter of 2021, ending September 30, 2021, the Company's paying user growth trend abruptly reversed, with Bumble losing over 60,000 paying users.

Despite these adverse facts, on September 10, 2021, Bumble undertook a SPO without disclosing problems its apps were facing or the slowdown in its paying user growth. The SPO allowed controlling shareholder Blackstone 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.

However, defendants negligently prepared the Registration Statement supporting the SPO and it failed to disclose that Bumble's paying user growth trends had abruptly reversed in the third quarter of 2021 and the Company had actually lost tens of thousands of paying users during the quarter. Further, paying users were reluctant to sign up for the Bumble app during that time due to the recent price hike for paid services on the app. Additionally, paying users were leaving the Company's Badoo app and/or could not make payments due to problems arising from the Company's transition of its payment platform.

On November 10, 2021, Bumble announced its third quarter 2021 financial results disclosing that its total paying user count had declined to 2.86 million, well below the Company's 2.9 million reported paying users highlighted in the Registration Statement. Subsequent to the SPO, the price of Bumble Class A common stock declined substantially.

If you purchased shares of Bumble Inc. (BMBL) in the Company’s September 10, 2021, SPO you have until March 25, 2022, to ask the court to appoint you lead plaintiff for the class.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

Contact us to learn more:
Aaron Dumas
[phone]
[e-mail]
Shareholder Information Form

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Bumble Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

Attorney Advertising. Past results do not guarantee a similar outcome.