ContextLogic Inc. Securities Class Litigation

Introduction

Securities class action litigation has been filed on behalf of investors in the common stock of ContextLogic Inc. (“ContextLogic”) (NASDAQ: WISH).  If you purchased or otherwise acquired ContextLogic common stock between December 16, 2020 and May 12, 2021, inclusive (the “Class Period”), including in connection with ContextLogic’s December 16, 2020 initial public offering (“IPO”), you may move the court for appointment as lead plaintiff by no later than July 16, 2021.

You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the action.  Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market.  We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.

ContextLogic investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should use the form below or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.

Background on the ContextLogic Securities Class Litigation

ContextLogic, headquartered in San Francisco, California, is a global mobile e-commerce company that operates the Wish platform that connects its value-conscious user base to merchants.  Wish generates revenue by charging merchants a commission on sales made in its marketplace.  On December 16, 2020, ContextLogic completed its IPO by issuing and selling more than 46 million shares of its Class A common stock at $24 per share, raising more than $1.1 billion in proceeds.

The action alleges that throughout the Class Period, defendants made materially false and misleading statements and omissions about the strength of ContextLogic’s business operations and financial prospects by overstating its then-present monthly active users (“MAUs”) and MAU growth trends. For example, in its IPO registration statement, declared effective on December 15, 2020, ContextLogic reported it had 108 million MAUs as of September 30, 2020, and emphasized sustained MAU growth from just 21 million MAUs since 2015.  ContextLogic also underscored the importance of this performance metric by claiming that “[w]e 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.”

On March 8, 2021, ContextLogic reported disappointing results for the fourth quarter and full year 2020 and revealing that its MAUs had “declined 10% YoY during Q4 to 104 million.”  On this news, ContextLogic’s stock price fell $1.83 per share, or more than 10%, from its closing price of $17.77 on March 5, 2021, to close at $15.94 on March 8, 2021, on unusually high trading volume. That same day, the Company issued Q1 sales guidance of $735-750 million (representing year-over-year growth of 67-70%), based on continued strong demand for its Wish platform.

On May 12, 2021, ContextLogic revealed that that its MAUs had declined another 7% to 101 million during Q1.  In addition, the Company issued disappointing revenue guidance for the second quarter 2021.  On this news, ContextLogic’s stock price fell $3.36 per share, or approximately 29%, from its closing price of $11.47 on May 12, 2021, to close at $8.11 per share on May 13, 2021, on unusually high trading volume.

Contact us

    First Name (required)

    Last Name (required)

    Email address (required)

    Street Address

    City

    State

    Zip

    Telephone

    How did you find our site?

    Are you currently represented by an attorney?

    II.TRANSACTIONS IN CONTEXTLOGIC COMMON STOCK

    From December 16, 2020 through May 12, 2021, inclusive, I made the following transactions in ContextLogic common stock:

    PURCHASES

    Date
    No. of Shares
    Price

    show more rows

    SALES

    Date
    No. of Shares
    Price

    show more rows

    During the 90 days after May 12, 2021, I made the following transactions in ContextLogic common stock:

    PURCHASES

    Date
    No. of Shares
    Price

    show more rows

    SALES

    Date
    No. of Shares
    Price

    show more rows

    Comments & questions:


    About Lieff Cabraser

    Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a “Plaintiffs’ Powerhouse” by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States and has assisted clients in recovering over $124 billion in verdicts and settlements. Benchmark Litigation named Lieff Cabraser its “2020 California Plaintiff Firm of the Year,” and in early 2021, The American Lawyer named our firm its “Boutique Litigation Firm of the Year.” Lieff Cabraser is committed to access to justice for all.

    PRACTICE GROUP BROCHURE