Wix Faces Class Action Over AI Product Allegations
News related to:Wix.com, Ltd · 3 min read
LOS ANGELES, Sept. 22, 2026 /CourierPR/ -- Wix.com, Ltd., a cloud-based web development platform, is facing a class action lawsuit over alleged misrepresentations regarding the performance and competitiveness of its AI product offerings. The lawsuit, filed by the Portnoy Law Firm, alleges that Wix overstated the competitiveness and performance of its AI products relative to those offered by other companies, while also understating the costs associated with developing and promoting these products.
The class action is open to investors who purchased Wix securities between February 19, 2025, and May 12, 2026, inclusive. Investors have until September 23, 2026, to file a lead plaintiff motion. The Portnoy Law Firm advises potential plaintiffs to contact attorney Lesley F. Portnoy for a complimentary case evaluation and to discuss their legal rights.
In June 2025, Wix acquired Base44, a so-called "vibe coding" platform designed to enable users to build apps and websites without the need for coding experience. This acquisition was part of Wix's strategy to expand its AI offerings.
On May 21, 2025, Wix issued a press release reporting its financial results for the first quarter of 2025, maintaining its 2025 revenue guidance in the range of $1.97 billion to $2 billion, which fell short of analyst expectations. This news caused the price of Wix stock to fall more than 16%, according to the complaint.
On November 19, 2025, Wix reported its financial results for the third quarter of 2025, disclosing that rising post-acquisition costs to support Base44 were having a material negative impact on Wix's financial results and mitigating the positive impacts of AI-related tailwinds. This news led to a nearly 20% drop in Wix stock, according to the complaint.
On March 27, 2026, JPMorgan issued a report on Wix, downgrading it to an "Underweight" from "Neutral" rating and cutting its price target to $91.00 from $114.00. The report explained that JPMorgan's conviction in the investment case had diminished due to signs of core business revenue growth deceleration and expressed concern that margin improvement would be slower and more volatile than investors anticipated. This news caused the price of Wix stock to fall nearly 3% further, according to the complaint.
On April 2, 2026, UBS issued a report on Wix, downgrading it to a "Neutral" from "Buy" rating and cutting its price target to $96.00 from $145.00, after re-evaluating Wix's growth algorithm for the core business and its margin profile. This report led to a nearly 10% decline in Wix stock, according to the complaint.
On April 7, 2026, Citizens issued an investor note on Wix, downgrading it to a "Market Perform" from "Market Outperform" rating based on increased costs associated with Base44 and competition concerns. This note caused the price of Wix stock to fall nearly 4% further, according to the complaint.
Finally, on May 13, 2026, Wix reported its financial results for the first quarter of 2026, disclosing earnings and revenue below consensus expectations and a sharp decline in operating margins that it largely attributed to softness in its professional developer business. On the same day, Wix held an earnings call where defendants acknowledged that Wix's professional developer customers were using competing AI tools, that Wix's new Wix Harmony platform had "holes" and "missing capabilities," and that there had been delays in delivering product updates and innovation to professional developer customers. This news caused the price of Wix stock to fall more than 27%, according to the complaint.
The Portnoy Law Firm, which has recovered over $5.5 billion for aggrieved investors, represents investors in pursuing claims caused by corporate wrongdoing.