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GRUB.US
id: 422
N.D. Illinois
Court
25 Apr 2019
Class period Start
28 Oct 2019
Class period End
02 Feb 2023
Claim deadline
City of Pontiac General Employees' Retirement System, et al. v. Grubhub Inc., et al.

Grubhub (GRUB) agreed to pay $42 million to settle a securities class action lawsuit accusing the Company and its Leaders of multiple suspected felonies.

The Complaint alleged that the Company and its Leaders failed to disclose, among other things, that:
  • customer orders were actually declining, despite the massive investments the Company had made to spur demand for and use of its platform;
  • 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;
  • 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;
  • 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;
  • Grubhub was tracking tens of millions of dollars below its revenue and earnings guidance and such guidance lacked any reasonable basis.
Grubhub (GRUB) agreed to settle with investors to avoid further litigation.
Case Status
Disbursed
Alleged Offence
Other
Suspected Party
Other
Security Type
Stocks
Trade Direction
Long
Plaintiffs
City of Pontiac General Employees' Retirement System
Attorneys
AsherKelly (Southfield, MI) Robbins Geller Rudman & Dowd LLP (Chicago, IL)
Judge
Hon. Matthew F. Kennelly
Administrator
Gilardi & Co LLC
Court hearing date
12 January 2023
Trades matching type
FIFO
+$42,000,000
Cash Settlement Amount

Grubhub Inc

Just Eat Takeaway.com N.V. operates an online food delivery marketplace. The company focuses on connecting consumers and restaurants through its platforms. It serves in Canada, the United States, A...

    Ticker
    GRUB.US
    ISIN
    US48214T3059
    CIK
    1594109
    Sector
    Consumer Discretionary
    Industry
    Internet & Direct Marketing Retail
    Country
    USA
    Address
    Oosterdoksstraat 80, Amsterdam, Netherlands, 1011 DK