The home services platform Angi Inc (NASDAQ: ANGI) is under securities fraud investigation by multiple shareholder rights law firms. Following the release of a dismal first-quarter report in early May that triggered a single-day stock plunge of over 35%, firms including The Schall Law Firm and Pomerantz LLP have initiated inquiries to assess whether the company and its management issued false or misleading statements.

The catalyst for these investigations was Angi Inc's Q1 financial results, released after market close on May 5, 2026. The data showed quarterly revenue of $238.2 million, a 3% year-over-year decline, missing market expectations of $240.9 million. Of greater concern to investors, the company reported an operating loss of $9.5 million, a sharp reversal from the $20 million operating profit recorded in the same period last year. Adjusted EBITDA also fell to $22.9 million from $27.7 million a year earlier.

Core operational metrics also flashed warning signs. The earnings report revealed that the average monthly number of active service professionals on the Angi platform declined to approximately 105,000 from about 134,000 a year ago, a drop of 22%. Marketplace revenue plummeted 56% year-over-year, and revenue per lead decreased by 5%.

However, what truly sparked the severe market reaction was the company's simultaneous announcement of a major strategic pivot. In a letter to shareholders, Angi Inc stated its intention to transform into an AI-native platform. As part of this shift, the company will "freeze functionality on the old platform, stop focusing on short-term revenue goals, and stop providing quarterly guidance."

Impacted by these developments, Angi Inc's stock price plummeted by $2.61, or 35.22%, on May 6, closing at $4.80. As of early June, the stock has declined approximately 52.7% year-to-date and is down about 68.4% from its 52-week high of $18.90 reached in August of last year.

Currently, the investigations by The Schall Law Firm and Pomerantz LLP are ongoing, with no formal legal complaints filed as of yet. The law firms are encouraging investors who purchased Angi Inc shares between April 18, 2024, and May 5, 2026, and suffered losses to contact them.