Pinterest, Inc. Class Action Lawsuit
- Company Name
- Pinterest, Inc.
- Stock Symbol
- Class Period
- May 16, 2019 to November 1, 2019
- Motion Deadline
- January 22, 2021
- Northern District of California
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 purchasers or acquirers of Pinterest common shares between May 16, 2019 and November 1, 2019, inclusive (the “Class Period”). The Pinterest class action lawsuit was commenced on November 23, 2020 in the Northern District of California and is captioned Hessong v. Pinterest, Inc., No. 20-cv-08243.
Pinterest is an image sharing and social media service comprised of small images or “pins” for finding ideas like recipes, home décor, and style inspiration. Pinterest offers online marketing services to commercial brands, which allow them to connect with people on the basis of their shared tastes, aesthetic preferences, and interests. Pinterest monetizes its platform through online advertising.
The Pinterest class action lawsuit alleges that, throughout the Class Period, defendants repeatedly assured the market that Pinterest was successfully expanding its domestic user base and that there existed a significant addressable market of U.S. users that served as a catalyst for its online advertising revenue. But, unbeknownst to investors, as the Pinterest class action lawsuit alleges, the domestic market was quickly becoming saturated, leaving little room for future expansion or growth. As a result, the Pinterest class action lawsuit further alleges that, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Pinterest’s addressable market in the United States was reaching its maximum capacity, which significantly decelerated Pinterest’s future ability to monetize on U.S. average revenue per user; (ii) Pinterest was at an increased risk of losing advertising revenue; and (iii) as a result, defendants’ public statements were materially false and misleading at all relevant times or lacked a reasonable basis and omitted material facts.
On October 31, 2019, Pinterest announced disappointing preliminary financial results for the third quarter of 2019, having missed revenue estimates. Additionally, Pinterest reported net revenue of $279.7 million versus the consensus projection of $282 million, indicating strong deceleration in the growth of its domestic user base. Pinterest also gave full year 2019 guidance, which it only marginally increased, indicating further deceleration in future quarters. On this news, the price of Pinterest common shares fell 17%, damaging investors.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Pinterest common shares 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 class 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 email@example.com. Lead plaintiff motions for the Pinterest class action lawsuit must be filed with the court no later than January 22, 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 seven 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.