AppLovin (APP) Falls Hard on SEC Probe

We recently published 10 Stocks Investors Are Dumping. AppLovin Corporation (NASDAQ:APP) is one of the worst performers on Monday.

AppLovin dropped for a fourth consecutive day on Monday, losing 14.03 percent to end at $587 apiece after it triggered an investigation by the Securities and Exchange Commission (SEC) to look into its data collection practices.

A report by Bloomberg, citing people privy to the matte,r said that the SEC is looking into allegations that AppLovin Corporation (NASDAQ:APP) violated service agreements with its platform partners to deliver more targeted advertising to consumers.

Bloomberg added that the probe is being handled by the agency’s enforcement officials, focused on cyber and emerging technologies.

The investigation followed a complaint against the company, alongside short-seller reports, earlier this year.

Fuzzy Panda Research claimed in February that AppLovin Corporation (NASDAQ:APP) misappropriated data from Meta, while Culper Research accused the company of exploiting application permissions to enable advertisements that could trigger unauthorized app installations on user devices.

Meanwhile, Muddy Research said in March that AppLovin Corporation (NASDAQ:APP) collected and structured user IDs from key platform partners.

For its part, the listed firm said it engaged a law firm to investigate the allegations.

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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.