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Stockholders’ Rights Law Firm Robbins Law Firm Announced that it has represented ContextLogic Inc. (NASDAQ:hope), according to the company’s initial public offering (“IPO”) on December 16, 2020, to the relief measures proposed under the Securities Act of 1933, and from December 16, 2020 to May 12, 2021 Between the public market purchasers of ContextLogic common stock in accordance with the Securities Exchange Act of 1934. ContextLogic is a global mobile e-commerce company that operates the Wish platform to connect its value-focused user base with merchants.
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ContextLogic Inc. (WISH) misstates key indicators in its IPO registration statement
According to the complaint, on December 16, 2020, ContextLogic completed an IPO, selling 46 million Class A common shares at a price of $24 per share, raising more than $1 billion in funds. In its IPO registration statement, ContextLogic touted 108 million monthly active users (“MAU”) as of September 30, 2020, and emphasized the importance of its indicators to investors. He pointed out: “We think the number of MAUs is The main factors driving this growth are revenue growth as well as user engagement and key indicators of our brand awareness.”
However, on March 8, 2021, when ContextLogic reported financial results for the fourth quarter and fiscal year 2020 ending on December 31, 2020 (“4Q20” and “FY20”), it actually indicated that as of December In the 2020 initial public offering (IPO), its MAU has “decreased by 10% year-on-year to 104 million in the fourth quarter, mainly in some emerging markets outside Europe and North America, as the company overcomes previous challenges in the logistics field. , Wish no longer emphasizes advertising and customer acquisition for the time being. That year.” On this news, the market price of ContextLogic’s common stock fell on March 8, closing down by more than 10% to $15.94 per share. However, the company reiterated its continued strong demand and provided sales guidance for the first quarter of 2021 (“1Q21”) ranging from US$735 to US$750 million, an increase of 67% to 70% year-on-year.
Then on May 12, 2020, ContextLogic announced its 1Q21 financial results for the interim period ending March 31, 2021, and disclosed that its MAU had fallen by 7% to 101 million. The company’s forward sales guidance has not reached the expected level. Its revenue guidance for the second quarter of 2021 (“2Q21”) is only US$715 to US$730 million, which is much lower than market expectations of US$759 million and far below the market. expected. 1Q21 provides between US$735 and US$750 million. On this news, the market price of ContextLogic’s common stock fell by $3.36 per share on May 13, 2021, a 29% drop, to close at $8.11 per share.
If you bought ContextLogic Inc. (WISH), according to the company’s IPO or between December 16, 2020 and May 12, 2021, you must request the court to appoint you as the plaintiff of this type of class action before July 16, 2021.
All representatives are charged incidentally. Shareholders need not pay any fees.
Contact us for more information:
Lauren Levi
(800) 350-6003
llevi@robbinsllp.com
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Robbins LLP is a nationally recognized leader in shareholder equity law.If a class action lawsuit against ContextLogic Inc. is settled, or you receive a free alert about a company engaged in wrongdoing, you will be notified, please register Stock watch Nowadays.
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