(NewMediaWire) - October 28, 2024 - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against WM Technology, Inc. (“WM Technology” or the “Company”) (NASDAQ: MAPS) securities between May 25, 2021 and September 24, 2024 (the “Class Period”).If you are an investor in WM Technology and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing pmayer@kaplanfox.com or by calling (646) 315-9003.
WM Technology, also known as “Weedmaps,” describes itself as the operator of “an online cannabis marketplace for consumers together with a comprehensive set of eCommerce and compliance software solutions for cannabis businesses. . . .” The Company’s SEC filings, including the proxy and registration statement for its merger on June 16, 2021 to become a publicly traded company, reported monthly active users, or MAUs, for various reporting periods.
On August 9, 2022, after the markets closed, WM Technology disclosed in a 10-Q filing with the U.S. Securities and Exchange Commission (“SEC”) that in the second quarter of 2022, the board of directors “received an internal complaint regarding the calculation, definition, and reporting of our MAUs.” The Company further disclosed that ‘[o]ur internal data suggests that the vast majority of users who are directed to weedmaps.com via pop-under advertisements close the site without clicking on any links” and that “[b]ased on management’s review, users whose access to the website resulted from these pop-under advertisements represented approximately 65% of our MAUs as of June 30, 2022, and 54%, 50% and 54% of our MAUs as of March 31, 2022, December 31, 2021 and September 30, 2021, respectively.”
Following this news, the price of WM Technology stock fell $0.87 per share, over 25%, to close at $2.59 per share on August 10, 2022.
Then on September 25, 2024, the SEC announced it had “charged [the Company], its former CEO, Christopher Beals, and its former CFO, Arden Lee, for making negligent misrepresentations in WM Technology’s public reporting of a self-described key operating metric, the ‘monthly active users,’ or ‘MAU,’ for WM Technology’s online cannabis marketplace.” The SEC also announced it had “instituted a related settled administrative proceeding against WM Technology” and that “WM Technology also agreed to pay a civil penalty of $1,500,000.”
Following this news, the price of WM Technology stock fell nearly 2%, to close at $0.92 per share on September 25, 2024.
WHY CONTACT KAPLAN FOX - Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, Oakland, Los Angeles, Chicago and New Jersey. With over 50 years of experience in securities litigation, Kaplan Fox offers the professional experience and track record that clients demand. Through prosecuting cases on the federal and state levels, Kaplan Fox has successfully shaped the law through winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.
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If you have any questions about this Notice, your rights, or your interests, please contact:
CONTACT:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
lking@kaplanfox.com
