Weedmaps Hit With Investor Class Action Following SEC Fines Over Misleading Metrics
Investors filed a class action lawsuit against WM Technology Inc. (NASDAQ:MAPS), commonly known as Weedmaps, accusing the company of issuing misleading and false statements regarding its performance metrics. According to a report by Debra Borchardt on Green Market Report, the lawsuit follows prior agreements by Weedmaps and former executives to pay fines after settling claims brought by the Securities and Exchange Commission (SEC).
Misleading Investor Metrics
In September, GMR revealed that Weedmaps had agreed to pay $1.5 million to the SEC for allegedly misleading investors about the company’s user metrics. The SEC charged that Weedmaps inflated its monthly active user (MAU) numbers, misleadingly portraying continued growth in public filings and earnings calls. According to the SEC, these “active” users included website visitors redirected from pop-up ads, most of whom took no action on the platform, …