NEW YORK, Nov. 21, 2019 /PRNewswire/ -- Bernstein Liebhard,
a nationally acclaimed investor rights law firm, announces that a
securities class action has been filed on behalf of investors that
purchased or acquired the securities of Grubhub Inc. ("Grubhub" or
the "Company") (NYSE: GRUB) between July 30,
2019 and October 28, 2019,
inclusive (the "Class Period"). The lawsuit filed in
the United States District Court
for the Northern District of Illinois alleges violations of the Securities
Exchange Act of 1934.
If you purchased GRUB securities, and/or would like to
discuss your legal rights and options please visit Grubhub
Shareholder Class Action Lawsuit or contact Matthew E. Guarnero toll free at (877)
779-1414 or MGuarnero@bernlieb.com.
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 and prospects.
Specifically, defendants failed to disclose, among other things,
that: (i) customer orders were actually declining, despite the
massive investments the Company had made to spur demand for and use
of its platform; (ii) 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; (iii) 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;
(iv) 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 (v) Grubhub was tracking tens of
millions of dollars below its revenue and earnings guidance and
such guidance lacked any reasonable basis.
On October 28, 2019, Grubhub
announced deeply disappointing financial results for its third
fiscal quarter of 2019. The Company revealed that an important
Company demand metric, daily average grubs ("DAGs"), had actually
fallen 6% sequentially despite an increase in active diners and the
Company's highly touted demand initiatives. Defendants also slashed
Grubhub's 2019 earnings and revenue projections and stated that the
Company would achieve only $100
million in EBITDA for 2020, more than 70% below market
expectations.
On this news, Grubhub stock closed down more than 40% on
October 29, 2019 on extremely heavy
trading volume.
If you purchased Grubhub securities, and/or would like to
discuss your legal rights and options please visit
https://www.bernlieb.com/cases/grubhubinc-grub-shareholder-class-action-lawsuit-stock-fraud-210/apply
or contact Matthew E. Guarnero toll
free at (877) 779-1414 or MGuarnero@bernlieb.com.
If you wish to serve as lead plaintiff, you must move the Court
no later than January 21, 2020. A
lead plaintiff is a representative party acting on behalf of other
class members in directing the litigation. Your ability to share in
any recovery doesn't require that you serve as lead plaintiff. If
you choose to take no action, you may remain an absent class
member.
Since 1993, Bernstein Liebhard LLP has recovered over
$3.5 billion for its clients. In
addition to representing individual investors, the Firm has been
retained by some of the largest public and private pension funds in
the country to monitor their assets and pursue litigation on their
behalf. As a result of its success litigating hundreds of lawsuits
and class actions, the Firm has been named to The National
Law Journal's "Plaintiffs' Hot List" thirteen times and
listed in The Legal 500 for ten consecutive
years.
ATTORNEY ADVERTISING. © 2019 Bernstein Liebhard LLP. The law
firm responsible for this advertisement is Bernstein Liebhard LLP,
10 East 40th Street, New York, New
York 10016, (212) 779-1414. The lawyer responsible for this
advertisement in the State of
Connecticut is Michael S. Bigin. Prior results do not
guarantee or predict a similar outcome with respect to any future
matter.
Contact Information
Matthew E. Guarnero
Bernstein Liebhard LLP
https://www.bernlieb.com
(877) 779-1414
MGuarnero@bernlieb.com
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SOURCE Bernstein Liebhard LLP