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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against ...

December 31, 2020 GMT

NEW YORK, Dec. 30, 2020 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Pinterest, Inc. (“Pinterest” or the “Company”) (NYSE: PINS) in the United States District Court for the Northern District of California on behalf of those who purchased or acquired the securities of Pinterest between May 16, 2019 and November 1, 2019, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Pinterest investors under the federal securities laws.

The Complaint alleges that Pinterest made false and misleading statements to the public throughout the Class Period and failed to disclose that: (i) the Company’s addressable market in the U.S. was reaching its maximum capacity; (ii) which significantly decelerated Pinterest’s future ability to monetize on U.S. average revenue per user; (iii) Pinterest was at an increased risk of losing advertising revenue; (iv) and as a result, defendants’ public statements were materially false and misleading at all relevant times or lacked a reasonable basis and omitted material facts.

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On October 31, 2019, the Company announced its financial results for the quarter ended September 30, 2019. The Company reported disappointing financial results, including 8% growth in the U.S. MAUs year over year, reaching 87 million, only 8 million more than the same period of the previous year. Pinterest also missed its consensus projections and reported lower than expected U.S. advertising revenue. The Company only marginally increased its full year 2019 guidance, implying further deceleration in the future quarters. On this news, the price of the Company’s shares steeply declined by 17%, to close at $20.86 on November 1, 2019.

In addition, a derivative action was filed against certain officers and members of the Board of Directors of the Company alleging breach of fiduciary duty and asserting other claims in the United States District Court for the Northern District of California.

If you wish to discuss your rights or interests regarding these matters, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

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The deadline for investors who purchased or otherwise acquired shares of Pinterest pursuant to the Offering and/or during the Class Period to seek appointment as a lead plaintiff in the class action lawsuit is January 21, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. 

Please visit our website at http://www.gme-law.com for more information about the firm.