On or around 09/07/2021 (Date of last review)
Filing Date: November 20, 2019
According to the Complaint, Grubhub provides online and mobile delivery options for restaurant pick-up and delivery orders. The Company pioneered online delivery services and, for several years after its 2004 founding, enjoyed a dominant market position.
The Complaint alleges that during the Class Period, Defendants made false and misleading statements and/or failed to disclose adverse information regarding Grubhub’s business and prospects. Specifically, the Complaint alleges Defendants failed to disclose, among other things, that: (i) customer orders were actually declining, despite the massive investments the Company had made to spur demand for and use of its platform; (ii) 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; (iii) 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; (iv) 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; and (v) Grubhub was tracking tens of millions of dollars below its revenue and earnings guidance and such guidance lacked any reasonable basis.
On January 30, 2020, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a Complaint on July 24. Defendants filed a Motion to Dismiss the Complaint on November 11. On September 7, 2021, the Court issued an Order denying Defendants' Motion to Dismiss.
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