:max_bytes(150000):strip_icc()/GettyImages-2201540705-5ad3631165d14cd5a215900b47436c05.jpg "A Big AppLovin Critic Walked Back Some Of Its Claims. The Stock Jumped.")
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Key Takeaways
- AppLovin shares soared Monday after CapitalWatch retracted accusations from a report about a shareholder of the adtech company.
- CapitalWatch said an internal review found the claims tying a shareholder to criminal organizations didn’t meet its standards.
One of AppLovin’s most vocal critics is walking back some of its claims.
Shares of AppLovin (APP) jumped over 13% Monday, leading gainers on the S&P 500, after CapitalWatch—a self-described “vigilante of capital flowing in and out of stock markets”—over the weekend posted a correction and apology on social media regarding some of its accusations against a shareholder.
“We are formally retracting specific characterizations and allegations contained therein regarding Mr. Tang Hao,” said CapitalWatch, adding that determined money-laundering claims in a report last month linking him to criminal organizations didn’t meet its standards.
CapitalWatch, which has said it has no financial interest in AppLovin, said its retraction hasn’t changed its stance about the adtech company, which CapitalWatch has previously called “the ultimate monument to 21st-century new-type transnational financial crime.”
Its Jan. 20 report alleged “systemic compliance risks and suspicions of major financial crimes within the core capital structure” of AppLovin, saying the company “views Anti-Money Laundering (AML) laws as non-existent.”
CapitalWatch said it plans to issue a fresh report on AppLovin that will “raise professional and necessary inquiries regarding figures that lack reasonable explanation.” AppLovin last month sent a cease and desist letter to CapitalWatch demanding it retract its claims, which the company called “defamatory and baseless.”
Despite Monday’s gains, shares of AppLovin—which late last year joined the S&P 500 index—have lost about 37% from December’s highs amid heightened scrutiny. Still, the stock is up about 20% from this time a year ago.
