Final Lead Plaintiff Deadline – GuruFocus.com
Robbins + Geller + Rudman +% 26amp% 3B + Dowd + LLP (https% 3A% 2F% 2Fwww.rgrdlaw.com% 2Fcases-contextlogic-inc-class-action-lawsuit.html) announces that buyer of ContextLogic Inc. ( NASDAQ: WISH) common stock pursuant to the registration statement and prospectus issued in connection with ContextLogic’s initial public offering on December 16, 2020 (“IPO”) and for buyers of ContextLogic securities between December 16, 2020 and May 12, 2021 (the “Great Deadline”) have until July 16, 2021 to file for lead plaintiff in the ContextLogic class action lawsuit. The case – with the heading Boehning v. ContextLogic Inc., No. 21-cv-03671 and assigned to Judge James Donato – was filed on May 17, 2021 by Robbins Geller Rudman & Dowd LLP. A similar lawsuit entitled Hoang v. ContextLogic, Inc., No. 21-cv-03930, was filed on May 25, 2021.
The Private Securities Litigation Reform Act of 1995 allows any investor who has acquired ContextLogic common stock pursuant to the registration statement and prospectus issued in connection with ContextLogic’s initial public offering and ContextLogic securities during the class action period to be named as the lead plaintiff in the Filing a ContextLogic class action lawsuit. A lead plaintiff is usually the applicant with the greatest financial interest in the legal protection sought by the alleged class, which is also typical and appropriate for the alleged class. A lead plaintiff is acting on behalf of all other group members in leading the ContextLogic class action lawsuit. The lead plaintiff can choose a law firm of their choice to bring the ContextLogic class action lawsuit. An investor’s ability to participate in a possible future recovery of the ContextLogic class action lawsuit does not depend on whether or not they are the lead plaintiff. If you would like to stand as the lead plaintiff in the ContextLogic class action or if you have any questions about your rights in relation to the ContextLogic class action, please visit our website by clicking here or contact JC + Sanchez of Robbins Geller at 800 / 449-4900 or 631-454-7719 or by email at [email protected]. Lead plaintiffs’ motions for the ContextLogic class action must be filed with the court by July 16, 2021 at the latest. You can view a copy of the first lawsuit filed at https% 3A% 2F% 2Fwww.rgrdlaw.com% 2Fcases-contextlogic -inc-class-klage-klage.html.
The ContextLogic class action lawsuit charges ContextLogic and some of its executives with violating the Securities Exchange Act of 1934 and / or the Securities Act of 1933. ContextLogic is a San Francisco-based global mobile e-commerce company that owns Wish. operates a platform that connects its value-conscious user base with retailers.
ContextLogic’s class action alleges that defendants made materially false and misleading statements about the strength of ContextLogic’s business and financial prospects in the registration statement and prospectus used to conduct the IPO and during the collection period by they overestimated the monthly active users present at that time (“MAUs”) and MAU growth trends.
On December 16, 2020, ContextLogic completed its IPO, issuing and selling 46 million shares of its Class A common stock at $ 24 per share, generating more than $ 1.1 billion in revenue. In its IPO registration statement, ContextLogic stated that it had 108 million MAUs as of September 30, 2020, the end of the last interim quarter prior to going public. ContextLogic stated there that it “defines”[d] MAUs as the number of unique users who have visited the Wish platform, either [its] mobile app, mobile web or on a desktop, during the month, “emphasizes the importance of the metric for investors by stating:” We see the number of MAUs as the main driver of sales growth as well as a key indicator of user engagement and brand awareness . ”
However, when ContextLogic released its fourth quarter financial results on March 8, 2021, and its fiscal year 2020 results for the period ended December 31, 2020, ContextLogic announced that by the time it went public in December 2020, ContextLogic’s MAUs were in fact “around 10% had decreased. Year-over-year to 104 million in the fourth quarter, mainly in some emerging markets outside of Europe and North America, where Wish temporarily put less emphasis on advertising and customer acquisition as the company tackled the logistical challenges it faced earlier in the year. ”As a result of this news, declined the market price of ContextLogic common stock on March 8, closing more than 10% to $ 15.94 per share on an unusually high trading volume of more than 10 million shares. However, the market price of ContextLogic’s common stock remained artificially inflated based on statements made by ContextLogic on the day of continued strong demand and the provision of a sales forecast of $ 735 million to $ 750 million for the first quarter of 2021 (“Q1 21” ), which is a growth of 67. compared to the previous year corresponds to% to 70%.
When ContextLogic announced its financial results for the first quarter of 2021 for the interim period ended March 31, 2021 on May 12, 2021, ContextLogic announced that its MAUs had declined another 7% to just 101 million. ContextLogic’s forward sales guidance also fell short, as its revenue forecast for the second quarter of 2021 of just $ 715 million to $ 730 million is well below the $ 759 million the market was expecting and well below the forecast of 735 up to $ 750 million 1Q21. In light of this news, the market price of ContextLogic common stock fell $ 3.36 per share, or 29%, to close at $ 8.11 per share on May 13, 2021, with an unusually high trading volume of more than 42 million shares or traded more than 7 times the average daily volume of the last 10 trading days.
The plaintiff is represented by Robbins Geller, who has extensive experience in prosecuting investor class actions, including lawsuits related to financial fraud.
With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm serving investors in securities class actions. Robbins Geller’s attorneys have secured many of the largest shareholder reclaims in history, including the largest securities class action of all time – $ 7.2 billion – in In re Enron Corp. Sec. Lit. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for getting $ 1.6 billion back for investors last year, more than double the amount paid by all other securities plaintiffs was reclaimed. For more information, see http% 3A% 2F% 2Fwww.rgrdlaw.com.
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