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SAN FRANCISCO, CA / ACCESSWIRE / June 11, 2021 / Hagens Berman urges ContextLogic Inc. (NASDAQ:WISH) investors with significant losses to submit your losses now. A securities class action is pending and certain investors who purchased shares in the company's December 2020 IPO or on the open market may have valuable claims.
ContextLogic Inc. (NASDAQ:WISH) Securities Class Action:
The complaint alleges that ContextLogic's IPO registration documents materially overstated the company's business metrics and financial prospects. Specifically, the IPO registration documents touted ContextLogic's exponential monthly active user (MAUs) growth, claiming its then108 million MAUs was a key driver of revenue growth.
In reality, by the time of its December 2020 IPO, ContextLogic's MAUs had declined materially and the IPO registration documents failed to disclose this known trend reasonably likely to materially impact ContextLogic's profitability.
On Mar. 8, 2021, Context reported disappointing 4Q 2020 and full year 2020 results, disclosing its MAUs had already "declined 10% YoY during Q4 to 104 million."
Then, on May 12, 2021, ContextLogic announced poor Q1 2021 results, including another 7% drop in MAUs to just 101 million, and the company slashed sales guidance for Q2 2021.
These disclosures caused the price of WISH shares to decline sharply.
"We're focused on investors' losses and proving ContextLogic overstated MAUs and concealed known trends," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a ContextLogic investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding ContextLogic should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email WISH@hbsslaw.com.
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
SOURCE: Hagens Berman Sobol Shapiro LLP
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