AppLovin Corp. shares fell on 12 June after short-seller Culper Research released a report accusing the mobile-advertising company of undisclosed ties to Chinese Communist Party intelligence networks, human trafficking and money-laundering operations. Culper also alleged that AppLovin failed to disclose stock pledges and maintained secret e-commerce arrangements with Chinese partners, pointing to Chinese national Hao Tang’s purported stake in the company through offshore entities. The report was issued as AppLovin presses ahead with a bid for TikTok. The accusations have drawn immediate legal scrutiny. Scott+Scott Attorneys at Law LLP said it is investigating whether AppLovin’s directors and officers breached their fiduciary duties in connection with the matters raised by the short report. In the options market, traders highlighted heavy activity, including purchases of 2,500 June 2027 $200 call contracts and 500 July 25 $450 call contracts, signaling investors’ expectations of heightened volatility around the stock.