Pomerantz Law Firm Announces the Filing of a Class Action Against ContextLogic Inc., and Certain Officers - WISH

NEW YORK, June 30, 2021 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against ContextLogic Inc. ("ContextLogic" or the "Company") (NASDAQ: WISH) and certain of its officers.   The class action, filed in the United States District Court for the Northern District of California, San Francisco Division, and docketed under 21-cv-05015, is on behalf of all persons and entities other than Defendants that purchased or otherwise acquired: (a) ContextLogic securities pursuant and/or traceable to the Company's initial public offering conducted on or about December 16, 2020 (the "IPO" or "Offering"); or (b) ContextLogic securities between December 16, 2020 and May 12, 2021, both dates inclusive (the "Class Period").  Plaintiff pursues claims against the Defendants under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act").

If you are a shareholder who purchased ContexLogic common stock pursuant and/or traceable to the Company's December 16, 2020 IPO, ContextLogic securities between December 16, 2020 and May 12, 2021, you have until July 16, 2021 to ask the Court to appoint you as Lead Plaintiff for the class.  A copy of the Complaint can be obtained at www.pomerantzlaw.com.   To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

[Click here for information about joining the class action] 

ContextLogic operates as a mobile ecommerce company in Europe, North America, South America, and internationally.  The Company operates the Wish platform that connects users to merchants and also provides marketplace and logistics services to merchants. The Company also generates fees by offering advertising and logistics services to its merchants, and Wish claims to have a user base of 100 million monthly active users ("MAUs") and 500,000 merchants.

On November 20, 2020, ContextLogic filed a registration statement on Form S-1 with the SEC in connection with the IPO, which, after an amendment, was declared effective by the SEC on December 15, 2020 (the "Registration Statement").

On December 16, 2020, pursuant to the Registration Statement, ContextLogic's securities began trading on the NASDAQ Global Market under the symbol "WISH." On December 17, 2020, ContextLogic filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (collectively, the "Offering Documents").

The complaint alleges that the Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation.  Additionally, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies.  Specifically, the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (i) ContextLogic's Q4 2020 MAUs had declined materially and were not then growing; (ii) accordingly, ContextLogic had materially overstated the Company's business metrics and financial prospects; and (iii) as a result, the Company's public statements were materially false and misleading at all relevant times.

On March 8, 2021, ContextLogic announced its Q4 2020 financial results.  In a press release, the Company stated that, during Q4 2020 its MAUs 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 stock price fell $1.83 per share, or 10%, to close at $15.94 per share on March 8, 2021.

Then, on May 12, 2021, ContextLogic announced its Q1 2021 financial results.  The Company disclosed that its MAUs had declined another 7% to just 101 million.  In addition, the Company's forward sales guidance also fell short, with its Q2 2021 revenue guidance of just $715 million to $730 million representing a significant departure from the $759 million the market had been led to expect and far less than the guidance of $735 to $750 million provided for Q1 2021.

On this news, ContextLogic's stock price fell $3.36 per share, or 29%, to close at $8.11 per share on May 13, 2021.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com

CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980

SOURCE Pomerantz LLP

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