AppLovin Hires Law Firm to Probe Short-Seller Allegations

AppLovin Corp. has hired a law firm to investigate short sellers’ allegations that the mobile advertising company is fraudulently juicing ad performance numbers on its platform.

The company retained the Quinn Emanuel Urquhart & Sullivan law firm to conduct an “independent review and investigation into recent short report activity,” AppLovin said in a statement on Friday. It followed a Muddy Waters report released on Thursday that alleged that AppLovin was misappropriating data and violating some of its platform partners’ terms of service, among other things, triggering a 20% drop in shares.