NEW YORK, May 25, 2021 (GLOBE NEWSWIRE) – Scott + Scott Lawyers LLP (“Scott + Scott”), an international shareholder and consumer rights law firm, has filed a class action lawsuit against ContextLogic, Inc. (NASDAQ: WISH) (“ContextLogic” or the “Company”) and some of its officers and directors, as well as the subscribers to the Company’s initial public offering in December 2020 (“IPO”), the violations of the Securities Act of 1933 and, separately, the Securities Exchange Act of 1934. If you purchased ContextLogic securities between December 16, 2020 and May 12, 2021 (the “Class Period”) and suffered a loss, please contact Jonathan Zimmerman for more information at (888) 398-9312 or to obtain [email protected].
ContextLogic is a mobile e-commerce company that operates the Wish platform, which connects customers with merchants around the world.
On December 16, 2020, ContextLogic completed its IPO and issued 46 million Class A common shares at a price of $ 24 per share for gross proceeds of more than $ 1.1 billion. According to the complaint, the registration statement and prospectus used to conduct ContextLogic’s initial public offering were materially inaccurate and misleading. In particular, these promotional materials misrepresented the then-existing truth about the following: (1) ContextLogic’s “nuanced user experience” has repeatedly been seen as the engine behind the widespread adoption of the Wish platform by customers with access to high quality merchants and affordable ones , high quality products and distributors who are offered reliable logistic services; (2) the company’s sales and marketing engine, which ContextLogic would “continue to invest” in and which is said to serve as a competitive advantage in attracting new users and increasing user engagement on the Wish platform; and (3) the Company’s Monthly Growth for Active User (MAU), which it identified as a “key indicator of user engagement and awareness.” [its] Brand.”
On March 8, 2021, ContextLogic announced its fourth quarter and fiscal 2020 financial results for the period ended December 31, 2020, and announced that fourth quarter MAUs were already “down 10% year over year”. In the same report, the company also revealed the logistical challenges it faced earlier in the year. In that news, ContextLogic’s stock fell 10%, falling from $ 17.77 on March 5, 2021 to $ 15.94 per share on March 8, 2021, the next trading day.
On May 12, 2020, ContextLogic announced its financial results for the first quarter of 21 for the interim period ended March 31, 2021. In the news, ContextLogic’s share price fell $ 3.36 per share, or 29%, to close at $ 8.11 per share on May 13, 2021.
What you can do
If you bought ContextLogic securities between December 16, 2020 and May 12, 2021If you have any questions about this notice or your statutory rights, please contact Attorney Jonathan Zimmerman at (888) 398-9312 or [email protected] The lead plaintiff’s deadline is July 26, 2021.
About Scott + Scott
Scott + Scott has extensive experience pursuing key securities, antitrust, and consumer law litigation in the United States. The company represents pension funds, foundations, individuals and other companies worldwide with offices in New York, London, Amsterdam, Connecticut, California, Virginia and Ohio.
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