Bumble Faces Multiple Class Action Lawsuits
Dating app Bumble has been hit with multiple class action lawsuits alleging various violations of federal securities laws, consumer protection laws, and state privacy laws. These lawsuits stem from a variety of claims, including:
Deceptive Statements in Secondary Public Offering (SPO)
In January 2022, Bumble conducted a secondary public offering (SPO) of its Class A common stock. Allegedly, Bumble and its executives made false or misleading statements in the SPO offering documents about the company’s financial performance and growth prospects. These statements artificially inflated the price of Bumble’s stock, causing investors who bought the stock to suffer losses when the true nature of the company’s business became apparent.
Biometric Privacy Violations
Bumble’s dating app Badoo uses a facial recognition feature to verify the identities of its users. This feature allegedly violates the Illinois Biometric Information Privacy Act (BIPA), which requires companies to obtain explicit consent before collecting or using a person’s biometric information. Several class action lawsuits have been filed alleging that Bumble violated BIPA by collecting and using users’ facial biometric information without their consent.
Fraudulent Subscription Practices
Bumble has been accused of using deceptive subscription practices to trick users into purchasing premium memberships. These practices allegedly include:
- Auto-renewal of subscriptions without adequate notice or opt-out options
- Failing to clearly disclose the terms and conditions of premium memberships
- Dragging out the cancellation process to make it difficult for users to cancel their subscriptions
Unfair Advertising
Bumble has also been accused of running deceptive ads that misrepresent the features and benefits of its dating app. These ads allegedly mislead users about the app’s ability to connect them with compatible matches and the likelihood of successful romantic relationships.
Class Action Settlements
In December 2023, Bumble agreed to a $18 million class action settlement resolving the securities fraud claims stemming from its SPO. The settlement will provide compensation to investors who purchased Bumble stock between September 10, 2021, and January 24, 2022.
In another development, a federal court in Illinois dismissed Bumble’s motion to dismiss a class action lawsuit alleging biometric privacy violations. The case is ongoing.
Bumble has denied all wrongdoing and is vigorously defending itself against these lawsuits. It remains to be seen how these cases will ultimately be resolved.
What Users Can Do
If you have been affected by any of Bumble’s alleged wrongdoings, there are steps you can take to protect your rights:
- Review your Bumble account statements and check for any unauthorized charges.
- Contact Bumble customer support to cancel your premium membership and request a refund.
- File a complaint with the Federal Trade Commission (FTC).
- Consider joining a class action lawsuit if one is available.
- Consult with an attorney to discuss your legal options.
It is important to be aware of the potential risks associated with using online dating apps, such as deceptive advertising, unfair subscription practices, and data privacy concerns. By taking steps to protect yourself and by staying informed about legal developments, you can help ensure a more positive and secure online dating experience.
