Shareholder Alert: Robbins LLP Announces Grubhub, Inc. (GRUB) Sued for Misleading Shareholders
21 Noviembre 2019 - 7:24PM
Business Wire
Shareholder rights law firm Robbins LLP announces that a
purchaser of Grubhub, Inc. (NYSE: GRUB) filed a class action
complaint for alleged violations of the Securities Exchange Act of
1934 between July 30, 2019 and October 28, 2019. Grubhub provides
an online and mobile platform for restaurant pickup and delivery
orders in the United States.
If you suffered a loss as a result of Grubhub's misconduct,
click here.
Grubhub, Inc. (GRUB) Accused of Misleading Investors
According to the complaint, in October 2018, Grubhub touted its
strategic investments, with its CEO stating that "with…improved
market effectiveness, increased marketing investment, more market
expansion, and a rapidly growing restaurant selection, [Grubhub]
believe[s] [its] efforts will yield more growth…for years to come."
Throughout the relevant period, the online delivery service
industry was becoming increasingly competitive as more companies
entered the market and engaged in a "price war." However, Grubhub
assured investors that its business model and exclusive
partnerships would allow it to continue to profitably increase its
user base. Contrary to these representations, Grubhub's customer
orders were actually declining and its new customers were
generating significantly lower revenues than previous cohorts due
to their propensity to use competitor platforms. Consequently, on
October 28, 2019, Grubhub announced deeply disappointing financial
results, revealing a 6% decline in the daily average orders and a
2020 EBITDA slashed by more than 70% below market expectations. On
this news, Grubhub's stock fell $25.28, more than 40%, to close at
$33.11.
Grubhub, Inc. (GRUB) Shareholders Have Legal Options
Contact us to learn more: Leo Kandinov (800) 350-6003
LKandinov@robbinsllp.com Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: https://www.businesswire.com/news/home/20191121006057/en/
Leonid Kandinov Robbins LLP 5040 Shoreham Place San Diego, CA
92122 LKandinov@robbinsllp.com (619) 525-3990 or Toll Free (800)
350-6003 www.robbinsllp.com
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