Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed Against ContextLogic Inc. and Encourages Investors to Contact the Firm Before July 16, 2021
NEW YORK, June 18, 2021 (GLOBE NEWSWIRE) – Law firm Kirby McInerney LLP is reminding investors 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 13, 2020 and May 12, 2021, both days inclusive (the “Class Period”); and / or ContextLogic common stock as set out in and / or traceable to the offer documents published in connection with the company’s initial public offering on December 16, 2020 (the “IPO” or “Offering”). Investors have until July 16, 2021 to apply to the court to be named as the main plaintiff in the proceedings.
Headquartered in San Francisco, California, ContextLogic is a global mobile e-commerce company that operates the Wish platform, which connects its value-conscious user base with merchants. Wish generates revenue by charging merchants a commission on sales in its marketplace. On December 16, 2020, ContextLogic completed its IPO, selling 46 million shares at a price of $ 24 per share.
On March 8, 2021, ContextLogic announced its financial results for the fourth quarter and fiscal year 2020 for the period ended December 31, 2020, and announced that the monthly active users of ContextLogic were “taken off” by the time it went public in December 2020 10% year-on-year in the fourth quarter to 104 million, mostly in some emerging markets outside of Europe and North America, where Wish temporarily put less emphasis on advertising and customer acquisition as the company tackled the logistical challenges it faced earlier in the year. ”Considering this News, ContextLogic’s share price fell $ 1.83 per share, or approximately 10.3%, from $ 17.77 per share to $ 15.94 per share on March 8, 2021, hurting investors .
On May 12, 2021, ContextLogic released its financial results for the first quarter of 2021, announcing that MAUs had declined another 7% to just 101 million. In light of this news, ContextLogic stock price declined $ 3.36 per share, or approximately 29.3%, from $ 11.47 per share to close at $ 8.11 per share on May 13, 2021, which is well below the IPO price of $ 24 per share.
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The lawsuit alleges that during the class action period the defendants made materially false and / or misleading statements and failed to disclose material adverse facts about the business, operations and prospects of the company. In particular, defendants have failed to disclose to investors that: (1) ContextLogic’s MAUs declined significantly in the fourth quarter of 2020 and then stopped growing; and (2) as a result of the foregoing, Defendants have materially overstated the Company’s business metrics and financial prospects.
If you have purchased or otherwise acquired ContextLogic securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at research @ kmllp. com or by completing this contact form to discuss your rights or interests in relation to these matters at no cost to you.
Kirby McInerney LLP is a New York based law firm focused on securities, antitrust, whistleblower and consumer disputes. The company’s efforts on behalf of shareholders in securities disputes have resulted in total recoveries of billions of dollars. For more information about the company, please visit the Kirby McInerney LLP website: http://www.kmllp.com.
This press release may be viewed as a solicitation in some jurisdictions subject to applicable laws and ethical rules.
Kirby McInerney LLP
Thomas W. Elrod, Esq.