NEW YORK, June 24, 2021 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of ContextLogic Inc. ("ContextLogic" or the "Company") (NASDAQ: WISH). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether ContextLogic and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On or around December 16, 2020, ContextLogic completed its initial public offering ("IPO"), selling 46 million shares of its Class A common stock at $24.00 per share, raising more than $1.1 billion in proceeds. On March 8, 2021, ContextLogic reported its fourth quarter and fiscal year 2020 financial results for the period ended December 31, 2020. Among other results the Company disclosed that by the time of its December 2020 IPO, its 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 [the Company] temporarily de-emphasized advertising and customer acquisition as it worked through logistics challenges it faced earlier in the year."
On this news, ContextLogic's stock price fell $1.93 per share, or 10.3%, to close at $15.94 per share on March 8, 2021.
Then, on May 12, 2020, ContextLogic announced 1Q21 financial results for the interim period ended March 31, 2021, disclosing that its MAUs had declined another 7% to just 101 million. The Company's forward sales guidance also fell short, with its second quarter 2021 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, ContextLogic's stock price fell $3.36 per share, or 29.29%, to close at $8.11 per share on May 13, 2021.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com