Wix.com Ltd. faces a securities class action in the Northern District of Illinois after its shares fell 27% following the company’s disclosure of its Q1 2026 financial results. The case, Yappi v. Wix.com Ltd., et al., No. 26-cv-08852, seeks to represent investors who purchased or otherwise acquired Wix securities from February 19, 2025, through May 12, 2026. Hagens Berman, which is investigating the claims, alleges that Wix made false or misleading statements about the competitiveness, performance and costs of its AI offerings, Base44 and Harmony. The firm says Wix understated the expense of developing and promoting the products while overstating their commercial and financial benefits. Wix’s operating expenses rose 46% year over year, while non-GAAP sales and marketing expenses reached $190.7 million, up 88%, causing the non-GAAP operating margin to fall from 21% to 5%. Hagens Berman says investors received negative updates on May 21, 2025, November 19, 2025, and May 13, 2026, prompting selloffs and analyst downgrades. The firm says Wix’s market capitalization fell by more than $1.1 billion on May 13, 2026, after management acknowledged limitations in Harmony and delays in product updates. Lead plaintiffs must file by September 22, 2026. Hagens Berman partner Reed Kathrein is leading the investigation and is seeking information from investors and potential whistleblowers.