NEW YORK, May 19, 2021 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired ContextLogic Inc. (“ContextLogic” or the “Company”) (NASDAQ: WISH) securities between December 16, 2020 and May 12, 2021, both dates inclusive (the “Class Period”); and/or ContextLogic common stock pursuant and/or traceable to the offering documents issued in connection with the Company’s initial public offering conducted on December 16, 2020 (the “IPO” or “Offering”). Investors have until July 16, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
In December 2020, ContextLogic completed its IPO in which it sold 46 million shares at $24 per share.
On March 8, 2021, ContextLogic reported its fourth quarter and fiscal year 2020 financial results for the period ended December 31, 2020, disclosing that by the time of its December 2020 IPO, ContextLogic’s monthly active users (“MAUs”) had already “declined 10% YoY during Q4 to 104 million, primarily in some emerging markets outside of Europe and North America where Wish temporarily de-emphasized advertising and customer acquisition as the company worked through logistics challenges it faced earlier in the year.” On this news, ContextLogic’s stock price declined by $1.83 per share, or approximately 10.3%, from $17.77 per share to close at $15.94 per share on March 8, 2021, thereby injuring investors.
On May 12, 2021, ContextLogic reported its first quarter 2021 financial results and disclosed that MAUs had declined another 7% to just 101 million. On this news, ContextLogic’s stock price declined by $3.36 per share, or approximately 29.3%, from $11.47 per share to close at $8.11 per share on May 13, 2021, significantly below the IPO price of $24 per share.
The lawsuit alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) ContextLogic’s fourth quarter 2020 MAUs had declined materially and were not then growing; and (2) as a result of the foregoing, Defendants materially overstated the Company’s business metrics and financial prospects.
If you acquired ContextLogic securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at [email protected], or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney’s website: www.kmllp.com.
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Kirby McInerney LLP
Thomas W. Elrod, Esq., (212) 371-6600