Bumble Premium Plus Statements Lead to Investor Lawsuits
Bumble Inc. is facing a lawsuit from stockholders alleging that the company misled investors about the success of its app relaunch and Premium Plus subscription tier. Filed in the U.S. District Court for the Western District of Texas, the lawsuit claims that Bumble provided overly optimistic projections while hiding internal struggles with the new subscription service.
The issue came to light on February 27, 2024, when Bumble reported weaker-than-expected financial results for Q4 2023, revealing that the Premium Plus subscription had underperformed. This led to a sharp 15% drop in Bumble’s stock price. In August 2024, Bumble reported additional disappointing results, further disclosing that the app relaunch and Premium Plus tier had not resonated with users as expected – causing another major stock decline of over 29%.
Investors allege Bumble misrepresented the potential of the Premium Plus tier, providing unrealistic growth and revenue projections while failing to disclose ongoing issues with its relaunch. As a result, Bumble now faces accusations of misleading investors and causing financial losses, which will no doubt impact both its current struggles and its future planned relaunches and expansions to the platform.
While this won’t directly impact users in any obvious way for the moment, it’s a clear hint towards the fact that Bumble has been struggling to jump some major hurdles in recent months.