Pomerantz Law Firm Initiates Class Action Lawsuit Against WM Technology, Inc. for Securities Fraud

Class Action Lawsuit Filed Against WM Technology, Inc.

Pomerantz LLP, a leading law firm specializing in class action litigation, has filed a class action lawsuit against WM Technology, Inc. (NASDAQ: MAPS). This lawsuit stems from claims that the company and certain individuals associated with it have engaged in fraudulent practices regarding the reporting of crucial business metrics.

Allegations of Securities Fraud

The lawsuit specifically alleges that WM and its officers provided misleading information that has affected the company’s securities. This comes after a series of events that raised red flags about the company's business practices and reporting methods. Shareholders who acquired WM securities during the relevant time period are encouraged to get in touch with the firm to explore their options.

Relevant Timeline of Events

The concern arose prominently on August 9, 2022, when WM disclosed to the U.S. Securities and Exchange Commission (SEC) that there were internal complaints regarding the accuracy of its reporting related to Monthly Active Users (MAUs) - a principal metric for the company. WM stated that their user growth was largely driven by pop-under advertisements; however, they later found that most users would leave the site without engaging. This revelation had a significant impact, causing WM's stock price to plunge by over 25% the following day.

Further compounding matters, on September 24, 2024, the SEC charged WM, alongside its former CEO Christopher Beals and former CFO Arden Lee, for making negligent representations regarding public reports of MAUs for WM's cannabis marketplace. The SEC's announcement dictated that WM had agreed to a civil penalty of $1.5 million, which once again led to a decline in the company's stock price.

The Role of Pomerantz LLP

Pomerantz LLP has a long-standing reputation for advocating on behalf of shareholders who have faced losses due to corporate misconduct. Founded over 80 years ago, the firm has successfully represented numerous class action suits and has recovered significant damages for its clients. The firm continues this tradition, fighting for those who have been victims of securities fraud.

Shareholders are urged to act quickly, as the period for appointing a lead plaintiff in this class action is limited. Interested shareholders have until December 16, 2024, to submit their request to be considered as lead plaintiff. For more information, including details on how to join the class action, individuals can access Pomerantz's dedicated page.

Conclusion

As the class action progresses, WM Technology, Inc. finds itself under scrutiny from both shareholders and regulatory bodies. This lawsuit highlights the responsibilities of corporate entities to maintain transparency and to accurately represent data to stakeholders. Investors considering engagement in this class action are encouraged to gather all necessary information and act promptly to safeguard their interests.