Bumble Inc. Image
Image for illustration purpose only - Photo byFotografie_Reimann on Pixabay

Bumble Inc.

Class Action
  • Settled
Investigation
11/10/2021
Initial Lawsuit
01/24/2022
Lawsuit Progression
08/25/2022
Settlement
03/31/2023

Investigation

This investigation concerns Bumble’s secondary public offering statements about its paying user growth trends, price hike and transition of its payment platform.

  • Investigation Date
    11/10/2021
  • Public Offering Date
    September 10, 2021
  • Hypothetical Transgression
    Securities Violation
Main Event

Q3 2021 Numbers - Up or Down?

11/10/2021

SEC Filing

Bumble discloses its Q3 2021 financial results for the quarter ended September 30, 2021, or 17 days after its filed its prospectus for Blackstone to sell up to 20.7 million shares at $54 per share. Bumble discloses 2.866 million average total paying users as of September 30, 2021, up from 2.865 in the previous quarter as reported in the September 13, 2021 prospectus (0.03% increase) or, in the alternative, down from 2.927 million (2.08% decrease) as reported in the Q2 2021 press release filed on August 11, 2021.

 

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$38.56 $47.75 $-9.19 -19.25%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 01/24/2022

This is a securities class action on behalf of all purchasers of the Class A common stock of Bumble directly in Bumble’s secondary public stock offering which took place on or about September 10, 2021.

  • Filing Date
    01/24/2022
  • Public Offering Date
    09/10/2021
  • Transgression
    Securities Violation
  • Filing Firms
    Robbins Geller Rudman & Dowd LLP
    Asherkelly
  • Case Title
    UA Loccal 13 Pension Fund v. Bumble Inc.
  • Docket Number
    1:22-cv-00624
  • Court
    New York Southern District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants 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 allegedly failed to disclose to investors:

(a) that Bumble’s paying user growth trends had abruptly reversed in 3Q21 and the company had actually lost tens of thousands of paying users during the quarter;
(b) 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;
(c) 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 the company’s transition of its payment platform; and
(d) as a result of the foregoing, Bumble’s business metrics and financial prospects were not as strong as the September 2021 secondary public offering registration statement had represented.

Defendants

  • Company
    Bumble Inc.
  • Chief Executive Officer
    Whitney Wolfe Herd
  • Chief Financial Officer
    Anuradha B. Subramanian
  • Director
    Ann Mather
  • Director
    Christine L. Anderson
  • Director
    R. Lynn Atchison
  • Director
    Sachin J. Bavishi
  • Director
    Matthew S. Bromberg
  • Director
    Amy M. Griffin
  • Director
    Jonathan C. Korngold
  • Director
    Jennifer B. Morgan
  • Director
    Elisa A. Steele
  • Director
    Pamela A. Thomas-Graham
  • Company
    Blackstone Group Inc.
  • Underwriter
    Goldman Sachs & Co. LLC
  • Underwriter
    Citigroup Global Markets Inc.
  • Underwriter
    Morgan Stanley & Co. LLC
  • Underwriter
    J.P. Morgan Securities LLC
  • Underwriter
    Blackstone Securities Partners L.P.

Lawsuit progression

  • Docket Number
    1:22-cv-00624
  • Court
    New York Southern District Court

Lead Counsel

08/25/2022

The court issued an order appointing the lead plaintiff and lead counsel.

  • Lead Counsel
    Bernstein Litowitz Berger & Grossman LLP
  • Lead Plaintiff
    Fund
  • Free File
    Order for lead

Amended Complaint

10/07/2022

Plaintiffs bring this action as a class action pursuant to Fed. R. Civ. P. 23(a) and 23(b)(3) on behalf of a class consisting of all persons or entities who purchased or otherwise acquired the publicly traded Class A common stock of Bumble directly in or traceable to the Secondary Public Offering (SPO) between September 10, 2021 and January 24, 2022, inclusive, and who were damaged thereby.

  • Updated Class Period
    09/10/2021 to 01/24/2022
  • Free File
    Amended Complaint

    • Operative complaint

Motion to Dismiss

11/18/2022

A motion to dismiss was filed with the court.

Settlement

Announce

On 03/31/2023, lead counsel Bernstein Litowitz Berger & Grossman LLP announced a proposed class action settlement.

Preliminary Approval

The court preliminarily approved the settlement on 04/14/2023. The settlement has a total value of $18,000,000 in Cash.

Am I included?

The notice states that you may be included, if you purchased or otherwise acquired the company’s publicly traded common stock during the period from 09/10/2021 to 01/24/2022, inclusive.

What is the estimated recovery?

According to the notice, the estimated average cash recovery per damaged share of common stock will be approximately $N/A per share, before deduction of court-approved fees and expenses. Lead Counsel filed a motion for an award of attorneys’ fees not to exceed 25% of the $18,000,000 and payment of expenses not to exceed $200,000.

How can I file a claim?

For information purposes only, last updated on 05/23/2023. Contact the claims administrator or lead counsel for further information.

Source

Factual Timeline

More

More Cases & Investigations