|Company Name||ContextLogic Inc.|
|Class Period||December 16, 2020 to May 12, 2021|
|Lead Plaintiff Motion Deadline||July 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.
Submit Your Information
If you suffered a loss on your ContextLogic Inc. investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below.
An attorney will contact you at no cost to provide you information about joining the action and answer your questions. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.