LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired WM Technology, Inc. (“WM Technology” or the “Company”) (NASDAQ: MAPS) securities between May 25, 2021, and September 24, 2024, inclusive (the “Class Period”). WM Technology investors have until December 16, 2024 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On August 9, 2022, WM Technology disclosed it had received an internal complaint concerning the calculation and reporting of Monthly Active Users (“MAUs”). The Company revealed that a significant portion of its MAU growth was driven by pop-under ads. The Company also acknowledged that most users from these ads left the site without interacting further.
On this news, the Company’s stock price fell $0.87 or 25.1%, to close at $2.59 per share on August 10, 2022, thereby injuring investors.
Then on September 24, 2024, the SEC announced it had charged the Company, the Company’s former CEO Christopher Beals, and the Company’s former CFO Arden Lee for “making negligent misrepresentations in WM Technology’s public reporting of a self-described key operating metric, the 'monthly active users,' or 'MAU,' for WM Technology’s online cannabis marketplace.” The SEC further announced it had “instituted a related settled administrative proceeding against WM Technology” and “WM Technology also agreed to pay a civil penalty of $1,500,000.”
On this news, the Company’s stock price fell $0.02 or 1.89%, to close at $0.92 per share on September 25, 2024, thereby further injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company, in allowing a key financial metric to be manipulated, did not maintain adequate internal controls over financial reporting; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased WM Technology securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com.
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