Pomerantz Law Firm Files Class Action Lawsuit Against WM Technology, Inc. Over Securities Fraud Allegations

Pomerantz Law Firm Files Class Action Against WM Technology, Inc.

On December 3, 2024, Pomerantz LLP announced that it has initiated a class action lawsuit against WM Technology, Inc. (traded under the NASDAQ symbol MAPS). This legal action is primarily directed at WM and its officers for purported securities fraud and other unlawful business practices.

The firm invites investors who purchased WM securities during the specified class period to reach out, particularly those who wish to be appointed as Lead Plaintiff. Any shareholder is encouraged to contact Danielle Peyton (email: [email protected], phone: 646-581-9980) for further information on joining the lawsuit.

The case has its roots in disclosures made by WM on August 9, 2022. In a file submitted to the U.S. Securities and Exchange Commission (SEC), the company revealed that its board of directors had received an internal complaint concerning issues related to the calculation and reporting of Monthly Active Users (MAUs), which is a key operational metric for the firm. WM stated that the reported growth in MAUs was largely due to pop-under advertising; however, internal data indicated that most users, once directed to the site via these ads, left without engaging with the content. The revelation prompted a sharp decline in WM's stock price, dropping over 25% the following day.

Fast forward to September 24, 2024, when the SEC announced that it had charged WM and two of its key executives, former CEO Christopher Beals and former CFO Arden Lee, with making negligent misstatements in the company's public records regarding MAUs for their online cannabis marketplace. The SEC also disclosed that WM had entered into a settled administrative proceeding where it agreed to pay a hefty $1.5 million civil penalty, contributing further to the company's declining stock performance.

These developments have created a precarious situation for shareholders. With significant implications for those invested in WM Technology, the class period for the lawsuit ends on December 16, 2024. Shareholders are being urged to act promptly if they wish to be involved in this lawsuit. A complaint copy is available on the Pomerantz Law Firm's website, providing potential plaintiffs with insights into the case's details.

Pomerantz LLP, renowned for its expertise in corporate, securities, and antitrust class action litigation, is well-founded in this area of law, having been established over 80 years ago. It has a noted history of recovering significant awards for victims of securities fraud and corporate misconduct. Shareholders turning to this firm hopes to gain restitution for any losses endured.

In conclusion, the Pomerantz Law Firm is encouraging shareholders to consider their standing in this matter seriously. Engaging in this class action could provide a pathway for recovery as the case unfolds. For interested parties, following through with contacting the firm before the deadline is crucial to ensure their voices are heard.

For those curious about further involvement, legal advice and representation can be sought as the legal proceedings move forward. The pursuit of justice remains a significant aspect of the shareholder's journey with WM Technology, and potential plaintiffs are reminded that this is an opportunity to seek redress for the impacts of perceived corporate misconduct.