Exclusive | $200B AppLovin faces data privacy probe after short-sellers allege misconduct: sources

"The SEC is investigating whether AppLovin "misled investors about its data collection and ad-targeting methods" after short-sellers alleged it had used digital "fingerprints" to improperly track users for targeted ads, according to Bloomberg. On Wednesday, AppLovin said it shut down a product called "Array" that an ad researcher claimed downloaded apps onto user's phones without their consent. The disclosure came days after researcher Ben Edelman, who holds a short position on AppLovin, claimed in an Oct. 13 report to have found source code that enabled forced downloads."

"Edelman's allegations remain unsubstantiated. A rep for AppLovin responded that "users must explicitly consent to download an application as a result of any of our ads," noting that "Array was a test product." A rep for AppLovin responded that "users must explicitly consent to download an application as a result of any of our ads," noting that "Array was a test product.""

"Meanwhile, state regulators, including staff from the attorneys general from Delaware, Oregon and Connecticut, have reached out to multiple short sellers, seemingly as part of a preliminary investigation into AppLovin, according to sources close to the situation and emails reviewed by The Post. The probe, which apparently began in March and continued through the summer, is focused on AppLovin's data collection practices, according to sources familiar with the investigation."

AppLovin is under investigation by the SEC for possibly misleading investors about data collection and ad-targeting after allegations of using digital "fingerprints" to track users for targeted ads. The company shut down a product called "Array" after a researcher claimed it downloaded apps onto users' phones without consent and said he found source code enabling forced downloads; those allegations remain unsubstantiated. AppLovin stated that users must explicitly consent to downloads from ads and described Array as a test product. State attorneys general in Delaware, Oregon and Connecticut have initiated preliminary inquiries, with Delaware leading a probe focused on data collection practices that began in March.

Read at New York Post