CLASS ACTION UPDATE: Law Office of Brodsky & Smith Reminds Investors of Deadline in Class Action Against ContextLogic, Inc. (Nasdaq: WISH)
BALA CYNWYD, June 21, 2021 /Access Wire/ – Law office of Brodsky & Smith reminds investors of the deadline to file regarding claims against ContextLogic, Inc. (“ContextLogic” or the “Company”) (Nasdaq: WISH) for possible breaches of Federal Securities law. ContextLogic is a San Francisco-based, global mobile ecommerce company that operates the Wish platform that connects its value-conscious user base to merchants.
If you purchased shares of ContextLogic (a) pursuant or traceable to ContextLogic’s December 16, 2020 initial public stock offering (“IPO”); and/or (b) between December 16, 2020 and May 12, 2021, inclusive (the “Class Period”), and wish to discuss the legal ramifications of the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith who will, without obligation or cost to you, attempt to answer your questions. The deadline for filing is July 16, 2021. You may contact Marc Ackerman, Esquire or Jason Brodsky, Esquire at Brodsky & Smith, Two Bala Plaza, Suite 805, Bala Cynwyd, PA 19004, or by calling toll free 877-534-2590.
On August 28, 2020, ContextLogic filed a Form S-1 Registration Statement which, after several amendments, was declared effective on December 15, 2020. In the Registration Statement and Prospectus used to conduct the IPO (collectively, the “IPO Registration Statement”) and throughout the Class Period, the defendants made materially false and misleading statements about the strength of ContextLogic’s business operations and financial prospects by overstating its then-present MAUs and MAU growth trends.
On March 8, 2021, the truth began to be revealed, when 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, its 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.” Following this news, the price of ContextLogic’s common stock declined on March 8, 2021, closing down more than 10% at $15.94 per share.
According to the filed complaint, the defendants failed to disclose and misrepresented the following adverse facts that existed at the time of the IPO: (1) ContextLogic’s fourth quarter 2020 monthly active users (“MAUs”) had declined materially and were not then growing; and (2) as a result of the foregoing, the defendants materially overstated ContextLogic’s business metrics and financial prospects.
Brodsky & Smith is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and have successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.