Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Northern District of California on behalf of shareholders of ContextLogic Inc. (NasdaqGS: WISH) who purchased shares between December 16, 2020 and May 12, 2021.
ContextLogic and certain of its executives are charged with failing to disclose material information during the Class Period and/or in the Registration Statement and Prospectus issued in conjunction with the initial public offering, violating federal securities laws.
On May 12, 2021, the Company announced its 1Q21 financial results for the interim period ended March 31, 2021, disclosing a decrease in monthly active users (“MAUs”) of an additional 7% from the previous period to just 101 million and a decrease in forward sales guidance for 2Q21 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, shares of ContextLogic plummeted 29%, or $3.36 per share, to close at $8.11 per share on May 13, 2021, on unusually high trading volume.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until July 16, 2021 to request that the court appoint them lead plaintiff.