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Pinterest, Inc. Class Action Lawsuit

Company Name
Pinterest, Inc.
Stock Symbol
PINS
Class Period
February 4, 2021 to April 27, 2021
Motion Deadline
June 28, 2021
Court
Northern District of California
41 days left to seek lead plaintiff status

Case Summary

The Pinterest, Inc. class action lawsuit charges Pinterest and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent persons and entities that purchased or otherwise acquired Pinterest securities between February 4, 2021 and April 27, 2021, inclusive (the “Class Period”).  The Pinterest class action lawsuit was commenced on April 29, 2021 in the Northern District of California and is captioned LeMoure v. Pinterest, Inc., No. 21-cv-03181.

Pinterest operates a platform that purports to provide 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 Pinterest class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) user growth was already slowing; (ii) thus, Pinterest expected user engagement to slow in the second quarter of 2021; and (iii) as a result, defendants’ positive statements about Pinterest’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On April 27, 2021, Pinterest announced its first quarter 2021 financial results and reported that global MAUs 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, defendant Benjamin Silbermann, 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.”  On this news, Pinterest’s share price fell by more than 14%, damaging investors.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Pinterest securities during the Class Period to seek appointment as lead plaintiff in the Pinterest class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Pinterest class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Pinterest class action lawsuit.  An investor’s ability to share in any potential future recovery of the Pinterest action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the Pinterest class action lawsuit or have questions concerning your rights regarding the Pinterest class action lawsuit, please provide your information here or contact counsel, Jennifer Caringal of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jcaringal@rgrdlaw.com.  Lead plaintiff motions for the Pinterest class action lawsuit must be filed with the court no later than June 28, 2021.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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