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ContextLogic Inc.

Company NameContextLogic Inc.
Stock SymbolWISH
Class PeriodDecember 16, 2020 to May 12, 2021
Lead Plaintiff Motion DeadlineJuly 16, 2021

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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Shares Purchased

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Shares Sold

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