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id: 1084, Created by Stan Vick, Scout
Maplebear Inc. d/b/a Instacart (CART) Misleading IPO Case
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19 Sept 2023Class period Start
01 Oct 2023Class 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.
Failure to Disclose,
Shock Event Date
02 October 2023
25 January 2024
Lead Plaintiff Deadline
25 March 2024
Hon. Edward J. Davila