Figma Inc. Faces Legal Scrutiny and Market Uncertainty
On November 22, 2025, Figma Inc. (NASDAQ: FIG), the web‑based collaborative design platform that went public on July 31, 2025, found its shares trading below the initial public offering price for the first time in the company’s history. The stock, which peaked near $142.92 during the 52‑week range, slipped to $34.31 at market close, a decline that exceeds 30 % from its IPO level of $33.00.
Investor Sentiment: Neutral and Cautious
Analysts at major brokerage firms adopted a neutral stance toward Figma, noting the company’s high valuation relative to earnings, with a price‑to‑earnings ratio of ‑13.43. The neutral rating reflects the market’s ambivalence about whether the firm’s growth prospects can justify its current valuation. Despite the optimism that accompanied the IPO, the share price has not sustained the early enthusiasm.
Legal Challenges: Allegations of AI‑Training Misconduct
A proposed class action lawsuit, filed in a U.S. federal court in California, accuses Figma of using its customers’ proprietary designs to train artificial intelligence models without consent. The lawsuit, reported by BitcoinEthereumNews.com and the Economic Times on November 21, 2025, alleges that the company’s AI tools may have exploited user data for commercial gain. The claim threatens to add regulatory and reputational risk to an already volatile share price.
Market Context: A Broader IPO Contraction
Figma’s experience is emblematic of a wider slowdown in the U.S. initial public offering market. As noted by The Economic Times and Bloomberg, November 2025 is expected to be the slowest month for IPOs, a trend amplified by a government shutdown and heightened investor caution. Many companies that had planned to go public at year‑end have postponed their debuts to the next year, eroding the momentum that once fueled tech‑sector valuations.
Current Financial Snapshot
| Metric | Value |
|---|---|
| Close Price (2025‑11‑20) | $34.31 |
| 52‑Week High (2025‑07‑31) | $142.92 |
| 52‑Week Low (2025‑11‑20) | $32.83 |
| Market Cap | $16.64 billion |
| Price/Earnings Ratio | ‑13.43 |
Outlook
With the legal dispute still pending and the broader IPO market contracting, Figma’s trajectory remains uncertain. Analysts remain neutral, and the stock’s trajectory will likely be influenced by the outcome of the lawsuit, regulatory responses, and the firm’s ability to demonstrate a sustainable, profitable business model that justifies its valuation in a market that is increasingly skeptical of high‑growth, low‑profit tech enterprises.
