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

25 Mar 2024

Lead Plaintiff motion deadline

$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.

Case Status

Lead Plaintiff Appointed

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

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

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