Yesterday, Bloomberg reported that adtech leader AppLovin is being “probed” by the SEC for data-collection practices. As a result, the stock fell roughly 15%.
Nestled within that report is an interesting detail: while the company hasn’t officially commented on reports of an SEC probe, it did confirm in an email to Bloomberg on Monday that Alex Spiro, the high-profile Quinn Emanuel attorney the company hired earlier this year, is continuing to lead its review into short seller activity.
AppLovin told Bloomberg that Spiro was brought in specifically to investigate the short reports and to examine why what the company describes as “clearly false reports” were published — adding that “the work continues.” Here’s that part of the article/story:
AppLovin also said in late March that it had hired A-list litigator Alex Spiro of law firm Quinn Emanuel Urquhart & Sullivan to conduct an “independent review and investigation into recent short report activity.” The company said by email Monday that Spiro was brought in specifically to investigate the provenance of the short reports and why “clearly false reports” were published, adding that “the work continues.”
Why This Matters:
The email to Bloomberg marks one of the first times the company has publicly clarified Spiro’s mandate since bringing him on, signaling that its internal investigation is still active. The language could be helpful in boosting confidence in the company, of course, following Bloomberg’s tough write-up.
Experts React:
Here are some more posts on X regarding Bloomberg’s AppLovin report, with some positive takes starting to emerge following the SEC swirl yesterday:
FWIW, the stock is up nearly 10% on the day.
Our Take:
While AppLovin has declined to comment on the alleged SEC inquiry, its confirmation that Spiro’s investigation remains underway suggests the company is still pursuing answers — and perhaps accountability? — over short reports it views as misleading. More to come.
