Robbins Geller Rudman & Dowd LLP Announces Upcoming Lead Plaintiff Deadline in the ContextLogic Inc. Class Action Lawsuit

NEW YORK–(BUSINESS WIRE) – Robbins Geller Rudman & Dowd LLP (https://www.rgrdlaw.com/cases-contextlogic-inc-class-action-lawsuit.html) announces that buyers of ContextLogic Inc. (NASDAQ: WISH) have acquired common stock pursuant to or traceable to the registration statement and prospectus issued in connection with ContextLogic’s initial public offering on December 16, 2020 (“IPO”) and to buyers between December 16, 2020 and May 12, 2021 (the “Class Period “) Until July 16, 2021, in order to obtain the appointment as lead plaintiff in the ContextLogic class action, Boehning v. ContextLogic Inc., No. 21-cv-03671 (ND Cal.) Assigned to Judge James Donato.

The Private Securities Litigation Reform Act of 1995 allows any investor who has acquired ContextLogic common stock pursuant to the registration statement and prospectus issued in connection with ContextLogic’s initial public offering and ContextLogic common stock during the Class Action Period, to be named as the lead plaintiff in the ContextLogic class action lawsuit. A lead plaintiff is usually the applicant with the greatest financial interest in the legal protection sought by the alleged class, which is also typical and appropriate for the alleged class. A lead plaintiff is acting on behalf of all other group members in leading the ContextLogic class action lawsuit. The lead plaintiff can choose a law firm of their choice to bring the ContextLogic class action lawsuit. An investor’s ability to participate in a possible future recovery of the ContextLogic class action lawsuit does not depend on whether or not they are the lead plaintiff. If you would like to stand as the lead plaintiff in the ContextLogic class action or if you have any questions about your rights in relation to the ContextLogic class action, please visit our website by clicking here or contact Mary K. Blasy of Robbins Geller at 800 / 449-4900 or 631-454-7719 or by email to [email protected]. Lead plaintiffs’ motions for the ContextLogic class action must be filed with the court by July 16, 2021 at the latest. You can view a copy of the filed lawsuit at https://www.rgrdlaw.com/cases-contextlogic-inc-. class-action-lawsuit.html.

The ContextLogic class action lawsuit charges ContextLogic and some of its executives with violating the Securities Exchange Act of 1934 and / or the Securities Act of 1933. ContextLogic is a San Francisco-based global mobile e-commerce company that owns Wish. operates a platform that connects its value-conscious user base with retailers.

ContextLogic’s class action alleges that defendants made materially false and misleading statements about the strength of ContextLogic’s business and financial prospects in the registration statement and prospectus used to conduct the IPO and during the collection period by they overestimated the monthly active users present at that time (“MAUs”) and MAU growth trends.

On December 16, 2020, ContextLogic completed its IPO, issuing and selling 46 million shares of its Class A common stock at $ 24 per share, generating more than $ 1.1 billion in revenue. In its IPO registration statement, ContextLogic stated that it had 108 million MAUs as of September 30, 2020, the end of the last interim quarter prior to going public. ContextLogic stated there that it “defines”[d] MAUs as the number of unique users who have visited the Wish platform, either [its] mobile app, mobile web or on a desktop, during the month, “emphasizes the importance of the metric for investors by stating:” We see the number of MAUs as the main driver of sales growth as well as a key indicator of user engagement and brand awareness . ”

However, when ContextLogic released its fourth quarter financial results on March 8, 2021, and Fiscal Year 2020 results for the period ended December 31, 2020, ContextLogic announced that by the time it went public in December 2020, ContextLogic’s MAUs were in fact “around 10% had decreased. Year-over-year to 104 million in the fourth quarter, mainly 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. ”As a result of this news, declined the market price of ContextLogic common stock on March 8, closing more than 10% to $ 15.94 per share on an unusually high trading volume of more than 10 million shares. However, the market price of ContextLogic’s common stock remained artificially inflated based on statements made by ContextLogic on the day of continued strong demand and the provision of a revenue forecast of $ 735 million to $ 750 million for the first quarter of 2021 (“Q1 21” ), which is a growth of 67. compared to the previous year corresponds to% to 70%.

When ContextLogic announced its financial results for the first quarter of 21 on May 12, 2020 for the interim period ended March 31, 2021, ContextLogic announced that its MAUs had declined another 7% to just 101 million. ContextLogic’s forward sales guidance was also missed, as its revenue forecast for the second quarter of 2021 of just $ 715 million to $ 730 million is well below the $ 759 million the market was expecting and well below the forecast of 735 up to $ 750 million 1Q21. In light of this news, the market price of ContextLogic common stock fell $ 3.36 per share, or 29%, to close at $ 8.11 per share on May 13, 2021, with an unusually high trading volume of more than 42 million shares or traded more than 7 times the average daily volume of the last 10 trading days.

The plaintiff is represented by Robbins Geller, who has extensive experience in prosecuting investor class actions, including lawsuits related to financial fraud.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms serving investors in securities disputes. With 200 attorneys in 9 offices, Robbins Geller has won many of the largest securities class actions in history. ISS Securities Class Action Services has ranked Robbins Geller as one of the top law firms in the world since 2010, in terms of both amount recovered and the total number of class action settlements for shareholders each year since 2010. The SCAS 2020 Top 50 Report ranked Robbins Geller as the first place when he got $ 1.6 billion back for investors last year, more than double the amount collected by any other claimant firm. Robbins Geller’s lawyers helped shape the securities laws and recovered tens of billions of dollars on behalf of the injured victims. In addition to securing the financial recovery of duped investors, Robbins Geller also specializes in implementing corporate governance reforms to improve financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by the courts, professional associations and the media as the leading attorneys in the industry. More information is available at http://www.rgrdlaw.com.

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