| COMPANY |
ContextLogic Inc. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
21-cv-03930 |
| JUDGE |
Honorable Beth Labson Freeman |
| CLASS PERIOD |
Pursuant/traceable to the Company’s IPO on December 15, 2020 |
| SECURITY TYPE |
Common Stock |
Case Background:
On May 17, 2021, the Initial Complaint in this securities class action was filed against ContextLogic Inc. (“ContextLogic” or the “Company”) and certain of ContextLogic’s directors and officers, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act. This is a federal securities class action on behalf of all persons who purchased ContextLogic securities between December 16, 2020 through May 12, 2021, both dates inclusive (the “Class Period”).
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements about the strength of the Company’s business operations and financial prospects by overstating its then-present MAUs and MAU growth trends. Specifically, the complaint alleges that in its IPO Registration Statement, ContextLogic repeatedly claimed to have had 108 million MAUs (Monthly Active Users) as of September 30, 2020, the end of the last interim quarter prior to its IPO. It stated there that it “define[d] MAUs as the number of unique users that visited the Wish platform, either on [its] mobile app, mobile web, or on a desktop, during the month,” emphasizing the materiality of the metric to investors by stating: “We view the number of MAUs as key driver of revenue growth as well as a key indicator of user engagement and awareness of our brand.”
Current Status of Case:
On April 5, 2024, Defendants filed a Motion to Dismiss Lead Plaintiffs' Third Amended Complaint. The Court entered an Order and Judgment granting the Motion to Dismiss without leave to amended. This action has concluded
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.