ContextLogic Stock: Berger Montague Investigates Potential Securities Fraud Claims Against ContextLogic, Inc. (WISH); Lead Plaintiff Deadline is July 16, 2021
Philadelphia, Pennsylvania--(Newsfile Corp. - June 4, 2021) - Berger Montague is investigating securities fraud claims against ContextLogic, Inc. ("ContextLogic" or the "Company") on behalf of investors who purchased ContextLogic securities (NASDAQ: WISH) between December 13, 2020 and May 12, 2021 (the "Class Period").
If you purchased ContextLogic securities during the Class Period, have questions concerning your rights or interests, or would like to discuss Berger Montague's investigation, please contact attorneys Andrew Abramowitz at email@example.com or (215) 875-3015, or Donnell Much at firstname.lastname@example.org or (215) 875-4667, or fill out the form on www.bergermontague.com/contextlogic.
Whistleblowers: Anyone with non-public information regarding ContextLogic is encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
According to a recently filed lawsuit, throughout the Class Period, the Company and its senior management concealed from investors that ContextLogic's fourth quarter 2020 monthly average users ("MAUs") had declined materially and were not growing. This caused the Company's business metrics and financial prospects to be materially overstated.
In December 2020, ContextLogic completed its initial public offering ("IPO") in which it sold 46 million shares at $24 per share. Thereafter, on March 8, 2021, the Company reported its fourth quarter and fiscal year 2020 financial results, disclosing that at the time of its IPO, the Company's MAUs had already declined 10% year-over-year during the fourth quarter. On this news, ContextLogic's share price fell $1.83 - more than 10% - to close at $15.94 per share on March 8, 2021.
Finally, on May 12, 2021, ContextLogic reported its first quarter 2021 financial results, revealing that MAUs had declined another 7% to just 101 million. This news sent shares plummeting $3.36 per share - approximately 29% - to close at $8.11 per share on May 12, significantly below the IPO price of $24 per share.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Andrew Abramowitz, Senior Counsel
Donnell Much, Associate
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