Shareholder Alert: Robbins LLP Reminds Investors Grubhub, Inc. (GRUB) Sued for Misleading Shareholders
20 Dicembre 2019 - 9:53PM
Business Wire
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20191220005547/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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