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Pinterest Hit With Investor Suit on Market Capacity, Ad Revenue

Nov. 24, 2020, 12:39 AM

Pinterest Inc. failed to tell investors about problems related to its user market and advertising revenue, a would-be class suit filed Monday in federal court in California alleges.

The social networking platform didn’t disclose how its potential U.S. market was reaching its maximum capacity in 2019, which could cause ad revenue to take a hit, according to the complaint filed in the U.S. District Court for the Northern District of California.

“We’re reviewing the complaint filed and will respond as appropriate with the court,” a Pinterest spokesperson told Bloomberg Law Monday.

The company “repeatedly assured” investors that its user base ...