Bumble investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than March 25, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Bumble Inc. (“Bumble”) (NASDAQ: BMBL) Class A common stock directly in Bumble’s secondary public stock offering which took place on September 10, 2021 (the “SPO”).
Case Background:
Bumble is an operator of two online dating platforms: (1) the Bumble app; and (2) the Badoo app. The Bumble app is unique among dating apps because it requires women to make the first move by reaching out to men. Bumble is a popular dating app in the United States, the United Kingdom, Australia and Canada. The Badoo app is popular in Europe and Latin America and is available in 73 countries as of July 31, 2021. Bumble also offers two types of memberships, free and “Premium.” While all members have access to certain aspects of both of the dating apps, Premium members pay subscription fees and additional fees for certain “Premium Services” that purportedly enhance members’ experience on the apps. Selling Premium memberships to “paying users” is how Bumble monetizes its apps.
Bumble is controlled by investment advisory firm Blackstone Group Inc. (“Blackstone”) and its affiliates. At the time of the SPO, Bumble had two series of shares outstanding: Class A common stock; and common units. The Class A common stockholders are entitled to one vote per share while the common unit holders are entitled to ten votes per unit.
In February 2021, Blackstone took Bumble public through an initial public offering (“IPO”) in which Bumble raised more than $2.4 billion from investors in gross offering proceedings. On September 7, 2021, Bumble filed a registration statement on a Form S-1 for the SPO. On September 9, 2021, the U.S. Securities and Exchange Commission declared the registration statement effective, and on September 13, 2021, Bumble filed the final Prospectus for the SPO, which forms part of the registration statement (collectively, the “Registration Statement”). In the SPO, unlike the IPO, Bumble did not raise any capital or sell any shares. Instead, the SPO allowed controlling stockholder 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. The complaint alleges that the Registration Statement failed to disclose any problems plaguing Bumble’s dating apps or the slowdown in Bumble’s paying user growth.
The truth regarding Bumble emerged on November 10, 2021, when Bumble announced its third quarter 2021 financial results. Bumble disclosed 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. As of the date the initial complaint was filed, Bumble Class A common stock traded below $27 per share, a decline of more than 50% from the SPO price.
The complaint alleges that the Registration Statement failed to disclose to investors that: (1) Bumble’s paying user growth trends had abruptly reversed in the third quarter 2021 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 the third quarter 2021 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 of the foregoing, Bumble’s business metrics and financial prospects were not as strong as the Registration Statement had represented.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.