The U.S. Securities and Exchange Commission has communicated that an investigation involving mobile marketing and advertising platform AppLovin remains ongoing, and the agency has declined requests to disclose related documents, according to a recent letter from the SEC.
Earlier reporting indicated that the probe was examining allegations that AppLovin may have breached service agreements with platform partners by steering more targeted advertising to consumers. When a request was made for documents connected to the investigation, the SEC refused to produce them and, after an appeal, reiterated that the matter is still active.
In its response, the SEC said releasing correspondence between staffers that reference AppLovin could "cause harm to the ongoing and active enforcement investigation." The agency explained that disclosure might enable individuals or entities relevant to the case to "fabricate evidence, influence witness testimony and/or destroy or alter certain documents." The SEC also noted that such correspondence could expose cooperating witnesses.
The agency has not provided further detail on the subject matter or the scope of its inquiry, and it has not accused AppLovin or its executives of any wrongdoing.
Reporting on the matter also stated that the investigation was prompted in part by a whistleblower complaint filed last year, along with multiple short-seller reports. The same reporting noted that an external news organization could not independently verify the information.
Requests for comment sent to both the SEC and AppLovin were not immediately answered, according to the reporting.
Readers were also presented with information about an investment product that evaluates AppLovin alongside other companies using numerous financial metrics. That material stated that the product has used AI-driven selection methods and listed notable past winners, including Super Micro Computer with a cited gain of +185% and AppLovin with a cited gain of +157%.
No timetable, formal allegations, or additional evidence related to the investigation were disclosed by the SEC in the correspondence reported, and the agency did not release the referenced staff emails or other documents for review on the grounds that doing so could hinder its enforcement work.
Context and next steps
The SEC's confirmation that the inquiry is current, coupled with its decision to withhold internal correspondence, leaves key questions unanswered about the investigation's focus, participants and potential outcomes. At this stage, the agency has limited public disclosure to its assertion that releasing certain materials could imperil the integrity of the probe.
For market participants and observers, the absence of detailed public findings means the investigation remains a developing matter without public accusations or specified allegations against AppLovin or individuals associated with the company.