Sign In
Step 1
Unite with Fellow Investors
Step 2
Choose the Best Attorney
Step 3
Provide Documents
Step 4
Follow Case Progress
Step 5
Get Payout
CART.US

Maplebear Inc. d/b/a Instacart (CART) Misleading IPO Case

N.D. California
Court
5:24-cv-00465
Case number
19 Sept 2023
Class period Start
01 Oct 2023
Class period End
  • $CART stockholder filed a claim vs. Maplebear for overstating the true potential of the online grocery business during its IPO, which led to investor losses.
  • In October, Gordon Haskett's insightful report sent $CART lower by 9%, wiping out $1.1B+ shareholder value.
On October 2, 2023, investment research firm Gordon Haskett initiated coverage of Instacart with a "hold" rating, stating that it "has doubts that online grocery delivery adoption will continue to materially increase at a time when consumers are becoming increasingly cautious about spending", while similarly citing the competitive environment in the online grocery shopping and delivery market as a headwind to the Company's business.

On this news, $CART fell 9.2% and lost over $1.1 billion of its market capitalization, seriously damaging investors.
  • On September 22, 2023, Reuters published an article noting that $CART was falling after "lukewarm analyst reports" indicated that the Company would struggle from heavy competition.
  • For example, the article noted that "BTIG analyst Jake Fuller gave Instacart a 'neutral' rating and warned that the company faces heavy competition from $DASH and $UBER in the slowly expanding market of grocery delivery."
Now, $CART continues to trade below the $30.00 per share offering price at IPO in September 2023.

Considering all the Company's representations during the IPO, investors have reasons to suspect Instacart and Accountables of overstating the extent to which online grocery shopping and delivery habits among consumers were accelerating and downplaying the extent of the competition that it faced in the online grocery shopping and delivery market.

The first affected investor has already filed the initial claim in the court of N.D. of California.
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
02 October 2023
Filing date
25 January 2024
Lead Plaintiff Deadline
25 March 2024
Judge
Hon. Edward J. Davila
Collecting participants…
Created by Stan Vick, Scout

Maplebear Inc.

Maplebear Inc., doing business as Instacart, provides online grocery shopping services to households in North America. It sells and delivers a range of products, such as food, alcohol, consumer hea...

    Ticker
    CART.US
    Sector
    Consumer Cyclical
    Industry
    Internet Retail
    Country
    United States
    Address
    50 Beale St Suite 600 San Francisco