Wish Beats Investor Litigation Over Ad Spending, For Now

A federal judge dismissed a shareholder lawsuit alleging Wish e-commerce platform operator, Contextlogic Inc., misled investors as it pulled back on advertising spending.

The lawsuit was brought in May 2021, after Wish’s stock price fell more than 29%.

Investors adequately alleged certain statements, including one about Wish’s efforts to acquire users, were false or misleading, Judge Beth Labson Freeman in the US District Court for the Northern District of California said in a Friday opinion.

But investors failed to link the May 2021 price drop to any new revelations about Wish’s advertising spend, she said.

Investors have a chance ...