CONTEXTLOGIC INC. CLASS ACTION ALERT: Wolf Haldenstein Adler Freeman & Herz LLP reminds investors that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California against ContextLogic Inc.
LEAD PLAINTIFF DEADLINE IS JULY 16, 2021
NEW YORK, May 26, 2021 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit been filed in the United States District Court for the Northern District of California on behalf of investors who purchased ContextLogic Inc. ("ContextLogic" or the "Company") (NASDAQ: WISH) common stock:
- between December 16, 2020 and May 12, 2021, inclusive (the "Class Period"); and/or
- pursuant or traceable to the registration statement and prospectus issued in connection with the Company's initial public offering conducted on or about December 16, 2020 (the "IPO" or "Offering").
All investors who purchased shares of ContextLogic Inc. and incurred losses are urged to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses in your investment in shares of ContextLogic Inc., you may, no later than July 16, 2021, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in the shares of ContextLogic Inc.
In December 2020, ContextLogic completed its initial public offering ("IPO") in which it sold 46 million shares at $24 per share.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that:
- ContextLogic's fourth quarter 2020 MAUs had declined materially and were not then growing; and
- as a result of the foregoing, defendants materially overstated the Company's business metrics and financial prospects.
On March 8, 2021, ContextLogic reported its fourth quarter and fiscal year 2020 financial results for the period ended December 31, 2020, disclosing that by the time of its December 2020 IPO, ContextLogic's monthly active users ("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."
On this news, ContextLogic's common stock price fell $1.83, more than 10%, to close at $15.94 per share on March 8, 2021.
On May 12, 2021, ContextLogic reported its first quarter 2021 financial results and disclosed that MAUs had declined another 7% to just 101 million. On this news, ContextLogic's stock price fell $3.36 per share, or approximately 29%, to close at $8.11 per share on May 12, 2021, significantly below the IPO price of $24 per share.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at [email protected], or visit our website.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: [email protected], [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE Wolf Haldenstein Adler Freeman & Herz LLP
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