If you purchased ContextLogic securities, and/or would like to discuss your legal rights and options please visit ContextLogic Shareholder Class Action Lawsuit or contact Joseph R. Seidman, Jr. toll free at (877) 779-1414 or Seidman@bernlieb.com
The complaint alleges that, during the Class Period, defendants made materially false and misleading statements regarding the Company’s business. Specifically, Defendants’ registration statement and prospectus issued in connection with the Company’s initial public offering (“IPO”) contained statements which were materially false and misleading because they failed to disclose and misrepresented the following adverse facts that existed at the time of the IPO: (a) that ContextLogic’s 4Q20 monthly active users (“MAUs”) had declined materially and were not then growing; and (b) that as a result of the foregoing, defendants materially overstated the Company’s business metrics and financial prospects.
On May 12, 2021, when ContextLogic announced 1Q21 financial results for the interim period ended March 31, 2021, it disclosed that its MAUs had declined another 7% to just 101 million. The Company’s forward sales guidance also fell short, with its 2Q21 revenue guidance of just $715 million to $730 million coming in significantly less than the $759 million the market had been led to expect and far less than the guidance of $735 to $750 million provided for 1Q21.
On this news, the market price of ContextLogic common stock declined $3.36 per share, or 29%, to close at $8.11 per share on May 13, 2021, on unusually high trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than July 16, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased ContextLogic securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/contextlogicinc-wish-shareholder-class-action-lawsuit-fraud-stock-401/apply/ or contact Joseph R. Seidman, Jr. toll free at (877) 779-1414 or Seidman@bernlieb.com
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP