The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of ContextLogic Inc. (WISH) Investors
Investors with losses exceeding $50,000 are encouraged to contact the firm
LOS ANGELES, June 17, 2021 /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired ContextLogic Inc. ("ContextLogic" or the "Company") (NASDAQ: WISH) common stock: (1) between December 16, 2020 and May 12, 2021, inclusive (the "Class Period"); and/or (2) pursuant or traceable to the registration statement and prospectus issued on connection with the Company's initial public offering conducted on or about December 16, 2020 (the "IPO" or "Offering"). ContextLogic investors have until July 16, 2021 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
In December 2020, ContextLogic completed its initial public offering ("IPO") in which it sold 46 million shares at $24 per share.
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, thereby injuring investors.
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.
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: (1) ContextLogic's fourth quarter 2020 MAUs had declined materially and were not then growing; and (2) as a result of the foregoing, defendants materially overstated the Company's business metrics and financial prospects.
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If you purchased ContextLogic securities during the Class Period, you may move the Court no later than July 16, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased ContextLogic securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE The Law Offices of Frank R. Cruz, Los Angeles
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