Lawsuit filed for Investors in shares of ContextLogic Inc. (NASDAQ: WISH)

An investor, who purchased shares of ContextLogic Inc. (NASDAQ: WISH), filed a lawsuit over alleged violations of Federal Securities Laws by ContextLogic Inc.

Investors who purchased shares of ContextLogic Inc. (NASDAQ: WISH) have certain options and for certain investors are short and strict deadlines running. Deadline: July 16, 2021. NASDAQ: WISH investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

On or about December 16, 2020, ContextLogic Inc. sold about 46 million shares of stock in its initial public stock offering (the "IPO") at $24.00 a share, raising nearly $1.1 billion in new capital. On May 14, 2021 the stock closed at $8.11.

In the IPO Registration Statement, ContextLogic Inc. claimed to have had 108 million monthly active users (“MAUs”) as of September 30, 2020, the end of the last interim quarter prior to its IPO.
ContextLogic Inc. stated there that it “define[d] MAUs as the number of unique users that visited the Wish platform, either on [its] mobile app, mobile web, or on a desktop, during the month,” emphasizing the materiality of the metric to investors by stating: “We view the number of monthly active users as key driver of revenue growth as well as a key indicator of user engagement and awareness of our brand.”

ContextLogic Inc. reported its fourth quarter and fiscal year 2020 financial results for the period ended December 31, 2020 on March 8, 2021. ContextLogic Inc. disclosed that, by the time of its December 2020 IPO, ContextLogic’s 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.”
Then on May 12, 2020, when ContextLogic Inc. announced 1Q21 financial results for the interim period ended March 31, 2021, ContextLogic disclosed that its MAUs had declined another 7% to just 101 million. ContextLogic Inc’s forward sales guidance also fell short, with its second quarter 2021 revenue guidance of just $715 million to $730 million coming in significantly less than the $759 million the market had been led to expect and far less than the guidance of $735 to $750 million provided for 1Q21.

Shares of ContextLogic Inc. (NASDAQ: WISH) declined from $15.45 per share on April 29, 2021 to as low as $7.95 per share on May 13, 2021.

The plaintiff claims that in the Registration Statement and Prospectus used to conduct the IPO and between December 16, 2020 and May 12, 2021, the defendants made materially false and misleading statements about the strength of ContextLogic’s business operations and financial prospects by overstating its then-present monthly active users (“MAUs”) and MAU growth trends.

Those who purchased shares of ContextLogic Inc. (NASDAQ: WISH) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.