Duolingo faces a securities class-action lawsuit over tensions between monetization and education quality. The lawsuit, filed on behalf of investors by Levi & Korsinsky, LLP, alleges that the company misled investors by promoting its "Energy" system as a reward when its actual design pushes free users toward paid subscriptions. This legal battle and Duolingo's shift toward artificial intelligence affect parents and educators who use the app for student learning.
What Happened
In April 2025, Duolingo rolled out its "Energy" feature to replace its traditional "Hearts" system. Under the Hearts system, users only lost a heart when they answered incorrectly, so successful students could keep studying. The new Energy system consumes energy for every completed exercise, even if the answer is correct, as documented in user guides like Gadget Hacks. According to the securities class action lawsuit, this mechanic deliberately adds friction to the free experience to force users to pay or watch ads.
At the same time, Duolingo instituted an "AI-first" directive. According to Rotten Wifi, this initiative aimed to phase out human contractors in favor of generative AI tools. As we previously reported, this transition resulted in user backlash over translation mistakes and lower-quality lessons. According to TechBloat, the company maintains that full-time language specialists still oversee the AI content. However, losing experienced contractors has altered the curriculum design pipeline.
The Bigger Picture
Educational research shows mixed results when using AI for language learning. A meta-analysis in Discover Computing suggests that generative AI can improve student language proficiency in informal settings. However, other studies show significant limits in AI reliability. According to Educational Assessment, Evaluation and Accountability, major AI models like GPT-4 display systemic grading discrepancies and cultural biases when evaluating students compared to human teachers.
Research in Interactive Technology and Smart Education confirms that while AI models help with basic grammar correction, they struggle with open-ended assessments and require human oversight to maintain quality. This matches claims in the class action lawsuit that Duolingo Max subscribers encountered frequent pronunciation errors and repetitive dialogues with AI avatars.
What This Means for Families
For parents and teachers, aggressive monetization and automation make the app less useful. In a review by The Linguist, educators note that while Duolingo helps build daily study habits, the curriculum lacks depth. It uses too much English and stops at the beginner (A2/B1) level, meaning it cannot lead to fluency.
As we previously analyzed, the "Energy" feature limits active learners. When students are locked out of lessons for progressing, they lose momentum. Relying solely on automated apps can leave students frustrated by technical errors and a restricted curriculum.
What You Can Do
- Do not use Duolingo as a primary curriculum. Supplement app usage with real-world conversational practice, bilingual books, and direct interaction with human teachers.
- Monitor how the "Energy" system affects your child. Encourage them to step away rather than watching ads or paying for premium tiers.
- If the mobile app's restrictions are too disruptive, use classroom-specific web portals or alternative language tools that do not penalize students for correct answers.