Missteps Revealed
Investors were thrown into a whirlwind when on August 9, 2022, WM Technology divulged an internal complaint regarding the accuracy of Monthly Active Users (“MAUs”). The company admitted that a substantial MAU increase stemmed from pop-under advertisements, with most users quickly exiting the platform thereafter.
Stock Price Rollercoaster
Following the disclosure, the company’s stock took a nosedive, plummeting by $0.87 or 25.1%, closing at $2.59 per share on August 10, 2022, leaving investors reeling in losses.
SEC Charges Strike
The plot thickened on September 24, 2024, as the Securities and Exchange Commission (SEC) leveled charges against WM Technology, its former CEO Christopher Beals, and ex-CFO Arden Lee for deceptive practices in reporting the key metric ‘monthly active users.’ The fallout included a settled administrative procedure and a hefty $1,500,000 civil penalty for WM Technology.
Further Stock Market Turmoil
Subsequently, on September 25, 2024, the company’s stock price shrank by $0.02 or 1.89%, closing at $0.92 per share, exacerbating the financial bruises suffered by investors.
The Road Ahead
As the storm clouds gather over WM Technology, investors are left grappling with the aftermath of these revelations. The saga unfolds with investigations and legal ramifications looming on the horizon.
Efforts for Transparency
For those seeking further insights or wishing to explore recovery options under federal securities laws, avenues to engage with this ongoing investigation have been provided. Amid the turmoil, transparency and accountability remain at the forefront.
