Mobile ad world drama: AppLovin not lovin' short seller assault claiming fraud

AppLovin, which provides a way for software developers to make money by embedding ads in their mobile apps, has been sued for a third time this month – after short-seller reports accused the biz of fraud and deceptive revenue practices.

The two US federal district lawsuits [PDF] filed on Monday in northern California, along with another complaint [PDF] filed on March 5, 2025, claim the advertising network has misled investors by making false statements about its sales.

The litigation cites critical reports published last month by Culper Research and Fuzzy Panda Research, both of which disclosed short positions in AppLovin stock - meaning they stand to profit if the share price falls.

As well as slinging ads within apps, AppLovin also owns a mobile gaming arm – a collection of ten studios – that it announced in mid-February it will offload for $900 million to double down on digital advertising.

The Culper report [PDF ...