April 29, 2021 - An investor in shares of Pinterest, Inc. (NYSE: PINS), filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Pinterest, Inc. in connection with certain allegedly false and misleading statements made between February 4, 2021 and April 27, 2021.
San Francisco, CA based Pinterest, Inc. provides visual discovery engine in the United States and internationally. Pinterest, Inc. reported that its annual Total Revenue rose from $1.14 billion in 2019 to over $1.69 billion in 2020, and that its annual Net Loss declined from over $1.36 billion in 2019 to $128.32 million in 2020.
On April 27, 2021, after the market closed, Pinterest, Inc. 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. During the conference call held the same day, Pinterest’s Chief Executive Officer stated that "[a]s pandemic lockdowns were eased in some parts of the world during mid-March, we began to see signs of less engagement and user growth on Pinterest."
Shares of Pinterest, Inc. (NYSE: PINS) declined to $63.25 per share on May 3, 2021.
According to the complaint the plaintiff alleges on behalf of purchasers of Pinterest, Inc. (NYSE: PINS) common shares between February 4, 2021 and April 27, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 4, 2021 and April 27, 2021, the defendants failed to disclose to investors that user growth was already slowing, that, as a result, the Company expected user engagement to slow in the second quarter of 2021, and that, as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.