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Shareholder Alert: Robbins LLP Reminds Investors Grubhub, Inc. (GRUB) Sued for Misleading Shareholders

December 20, 2019 GMT

SAN DIEGO & CHICAGO--(BUSINESS WIRE)--Dec 20, 2019--

Shareholder rights law firm Robbins LLP reminds investors 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 pick-up and delivery orders in the United States.

If you suffered a loss as a result of Grubhub’s misconduct, click here.

Grubhub, Inc. (GRUB) Suffers As Market Dominance Declines

According to the complaint, for many years, Grubhub dominated the online delivery market, controlling approximately 40% of the market in early 2018. However, Grubhub’s dominance did not go unchallenged for long, as competitors like DoorDash and Uber Eats entered the online food delivery space with aggressive marketing tactics that attracted diners and restaurant partners and diminished Grubhub’s dominant market share. Due to significant private capital and outside revenue sources, these competitors had the capacity to provide deep discounting with astoundingly low delivery fees, igniting a “price war” within the industry. In a futile attempt to compete, Grubhub convinced restaurant chains to enter into exclusivity deals, claiming to investors these would allow the Company to attract “high-quality” customers and dismissing “any data that suggest[ed] [that the new users were] using multiple different services or different apps.” Ultimately Grubhub’s inability to compete became clear on October 28, 2019, when it announced deeply disappointing financial results, slashing its 2020 EBITDA by more than 70% below market expectations, citing the propensity of its customers to use competing platforms. On this news, Grubhub’s stock fell $25.28, more than 40%, to close at $33.11. The stock still has yet to recover.

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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20191220005547/en/

CONTACT: 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

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA ILLINOIS

INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES

SOURCE: Robbins LLP

Copyright Business Wire 2019.

PUB: 12/20/2019 03:53 PM/DISC: 12/20/2019 03:53 PM

http://www.businesswire.com/news/home/20191220005547/en