RADNOR, Pa., May 1, 2021 /PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action lawsuit has been filed against Pinterest, Inc. (NYSE: PINS) (“Pinterest”) on behalf of those who purchased or acquired Pinterest securities between February 4, 2021 and April 27, 2021, inclusive (the “Class Period”).
Investor Deadline Reminder: Investors who purchased or acquired Pinterest securitiesduring the Class Period may, no later than June 28, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; via e-mail email@example.com; orclick https://www.ktmc.com/pinterest-inc-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=pinterest
Pinterest operates a platform that provides inspiration for its users’ lives. Monthly active users (“MAUs”) are the number of Pinterest users who interact with Pinterest at least once during the 30-day period ending on the date of measurement.
The Class Period commences on February 4, 2021, when Pinterest announced its fourth quarter and full year 2020 financial results in a press release. Throughout the Class Period, the defendants touted its user engagement and growth.
However, the truth was revealed on April 27, 2021 when, after the market closed, Pinterest announced its first quarter 2021 financial results and reported that global monthly active users grew only 30% year-over-year to 478 million, a decline from the prior quarter’s 37% year-over-year growth. Pinterest further announced that, “[i]n Q2, we expect global MAUs to grow in the mid-teens and US MAUs to be around flat on a year-over-year percentage basis.”
Following this news, Pinterest’s share price fell $11.25, or 14.5%, to close at $66.33 per share on April 28, 2021.
The complaint alleges that throughout the Class Period, the defendants failed to disclose to investors that: (1) user growth was already slowing; (2) as a result, Pinterest expected user engagement to slow in the second quarter of 2021; and (3) as a result of the foregoing, the defendants’ positive statements about Pinterest’s business, operations, and prospects were