ContextLogic Board, Execs Misled Investors on Growth, Suit Says

ContextLogic, the company that developed discount e-commerce app Wish, is facing an investor suit alleging that its executives and board made misleading statements about the app’s growth ahead of last year’s initial public offering.

Shareholder Yashasvi Patel’s derivative shareholder suit, filed Aug. 13 in the U.S. District Court for the Northern District of California, also alleged that ContextLogic CEO Piotr Szulczewski and three other insiders improperly sold $140 million of stock that was artificially inflated.

ContextLogic didn’t immediately respond to a request for comment.

San Francisco-based ContextLogic company didn’t disclose in offering documents that it was experiencing logistical challenges in ...