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MAPS.US
id: 1373
WM Technology ($MAPS) Investor Settlement
The parties have reached an agreement to settle the case, but the terms are still being finalized. You can submit your application now, and it will be processed once claims filing opens.
C.D. California
Court2:24-CV-08959
Case number05/25/2021
Class period Start09/24/2024
Class period EndWM Technology has agreed to a tentative settlement to resolve investor claims that it inflated its monthly active users metric and misled investors about user growth and related internal controls.
Outline:
On May 25 and 26, 2021, WM used merger materials to tout strong monthly active user growth ahead of its Silver Spike deal. From August 2021 through May 2022, it kept reporting rising MAUs, even though much of that traffic allegedly came from pop-under ads rather than real engagement. On August 9, 2022, WM disclosed an internal complaint about its MAU reporting, and $MAPS fell more than 25%. On September 24, 2024, the SEC charged WM and two former executives, and the case has now moved to a tentative settlement.
Timeline:
- May 25, 2021: WM filed a registration statement for its merger with Silver Spike that included MAU figures.
- May 26, 2021: WM filed its definitive proxy for the June 10, 2021 special meeting on the merger.
- June 16, 2021: Legacy WM merged with Silver Spike and began trading publicly as WM Technology, Inc.
- August 13, 2021: WM reported 12.3 million monthly active users for the second quarter of 2021.
- February 25, 2022: WM reported 15.73 million monthly active users in its annual report for 2021.
- May 6, 2022: WM reported 16.43 million monthly active users for the first quarter of 2022.
- August 9, 2022: WM disclosed an internal complaint regarding the calculation, definition, and reporting of MAUs and said most pop-under users did not engage with the site.
- September 24, 2024: The SEC announced charges against WM, former CEO Christopher Beals, and former CFO Arden Lee over MAU reporting.
- September 25, 2024: $MAPS closed at $0.92 after the SEC announcement.
- February 2026: WM agreed to settle the lawsuit.
Background:
WM describes itself as a leading online cannabis marketplace for consumers, along with eCommerce and compliance software solutions for cannabis businesses. In 2021, the company went public through its merger with Silver Spike and highlighted monthly active users as a key operating metric tied to the strength and expansion of its user base.
Investors say those MAU figures were inflated. According to the case, a large and increasing share of reported users came from pop-under advertisements on third-party sites that automatically showed WM’s platform on users’ screens. Many of those visitors allegedly closed the site without clicking on links or taking measurable action, even though they were still counted in the MAU totals.
WM continued reporting rising MAUs through August 2021, November 2021, February 2022, and May 2022. Investors say those figures gave the market a misleading picture of real engagement and user growth. The case also challenges Sarbanes-Oxley certifications tied to WM’s reporting and internal controls.
On August 9, 2022, WM disclosed that its board had received an internal complaint about the calculation, definition, and reporting of MAUs. The company also said users coming from pop-under ads made up about 65% of MAUs as of June 30, 2022, and large portions of MAUs in earlier periods as well. Shares fell more than 25% on that news.
The issue resurfaced on September 24, 2024, when the SEC announced charges against WM, Beals, and Lee over the company’s MAU reporting. The SEC also said WM agreed to settle related administrative claims and pay a $1.5 million civil penalty. The matter has now moved to a tentative settlement.
What Can Investors Expect Now?
WM Technology has agreed to a tentative settlement to resolve investor claims that it inflated its monthly active users metric and misled investors about user growth and related internal controls.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Case Type
US Securities Class Action
Case Status
Tentative Settlement
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Fraud
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Filing date
10/17/2024
Lead Plaintiff Deadline
12/16/2024
Plaintiffs
Seret Ishak
Attorneys
The Rosen Law Firm, P.A.
Defendants
Christopher Beals; Arden Lee
Trades matching type
FIFO
Frequently Asked Questions
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