Pinterest Complaint Filed

Pinterest has Class A and Class B stocks (20 to 1 voting power, convertible, Class B is not tradable).

The ratio of outstanding Class A – Class B has evolved. Following the IPO in April 2019, 80M Class A outstanding for 450M Class B outstanding. Most recently, 510M Class A outstanding for 107M Class B. During the CP, the number of Class A outstanding grows from 86M to 305M, using 305M with the current float ratio of 78.3% to estimate damages.

The news at the beginning of the Class Period caused a drop, which is clearly not ideal for the case; the case would have been better with a shorter Class Period starting on August 1, 2019, or with a longer Class Period starting with the prospectus around 4/18/2019 (the prospectus contains similar statements to the letter issued for Q1 2019).

On this news, the price of Pinterest (NYSE: PINS) common shares sharply declined by 17%, to close at $20.86, on November 1, 2019, on unusually high trading volume.

No insider sales reported.

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Ed Korsinsky | Litigation View Blog

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