Glancy Prongay & Murray LLP Announces the Filing of a Securities Class Action on Behalf of Grubhub Inc. Investors
LOS ANGELES--(BUSINESS WIRE)--Nov 26, 2019--
Glancy Prongay & Murray LLP (“GPM”), a national investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors that acquired Grubhub Inc. (“Grubhub” or the “Company”) (NYSE: GRUB ) common stock between July 30, 2019 and October 28, 2019, inclusive (the “Class Period”). Grubhub investors have until January 21, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com.
On October 28, 2019, Grubhub announced disappointing financial results for its third fiscal quarter of 2019, revealing that an important demand metric, daily average grubs, had actually fallen 6% sequentially despite an increase in active diners. The Company slashed 2019 earnings and revenue projections, and expected only $100 million in EBITDA for 2020, more than 70% below market expectations.
On this news, Grubhub share price fell $25.28, or over 43%, to close at $33.11 per share on October 29, 2019, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that customer orders were actually declining, despite the massive investments the Company had made to spur demand for and use of its platform; (2) that Grubhub’s new customer additions were generating significantly lower revenues as compared to historic cohorts because these customers were more prone to using competitor platforms; (3) that Grubhub’s vaunted business model under which it secured exclusive restaurant partnerships had failed, and Grubhub needed to engage in the same aggressive non-partnered sales tactics embraced by its competitors to generate significant revenue growth; (4) that Grubhub was required to spend substantial additional capital in order to grow revenues and retain market share in the face of heightened competitive dynamics and market saturation, eviscerating the Company’s profitability; and (5) that as a result, Grubhub’s public statements were materially false and misleading at all relevant times.
Follow us for updates on Twitter: twitter.com/GPM_LLP.
If you purchased Grubhub common stock during the Class Period, you may move the Court no later than January 21, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com:https://www.businesswire.com/news/home/20191126005719/en/
CONTACT: Glancy Prongay & Murray LLP, Los Angeles
Lesley Portnoy, 310-201-9150 or 888-773-9224
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES
SOURCE: Glancy Prongay & Murray LLP
Copyright Business Wire 2019.
PUB: 11/26/2019 01:30 PM/DISC: 11/26/2019 01:30 PM