Grab Holdings Limited (NASDAQ: GRAB) “became a public entity via a business combination with Altimeter Growth Corp.” on December 1, 2021. Yet by March 3, 2022, the complaint for this class action alleges, it was announcing a large loss. The complaint claims the company, along with its CEO and CFO, made “materially false and misleading statements, as well as failed to disclose material adverse facts about the Company’s business,” in violation of the Securities Exchange Act of 1934.
The class for this action is all persons and entities who bought or otherwise acquired the securities of Grab Holdings between November 12, 2021 and March 3, 2022 and who were damaged thereby.
Grab Holdings provides a “superapp” that involves deliveries, mobility, and digital financial services.
The complaint cites a statement about revenues for the three months ending in September 30, 2021 that Grab made twice, both in its initial report on November 12, 2021 and in an amended Form F-4/A that it made on November 19: “Revenue was $157 million for the three months ended September 30, 2021, down 9% year-over-year, as a result of the decline in mobility due to the severe lockdowns in Vietnam. Revenue is net of consumer incentives and merchant- and driver-partner incentives.”
According to the complaint, the November 19 document stated that Grab “had the region’s largest on-demand driver supply network” and that the supply of driver-partners and merchant-partners “may” decline. It also stated that a “Key Factor” going forward was Grab’s “ability to continue to reduce driver- and merchant-partner and consumer incentives.”
The complaint alleges that these and other statements made in Grab’s reports were “materially false and/or misleading” and that Grab had not disclosed material adverse facts for the period.
On March 3, 2022, Grab announced that revenues for its fourth quarter had declined 44% as compared to the previous quarter, and that the company had a $1.1 billion loss for the fourth quarter. The complaint quotes the company as saying, “Revenue was $122 million, a 44% decline [year-over-year] as Grab preemptively invested to grow driver supply to support strong recovery in mobility demand.”
The complaint alleges that the company did not disclose the following:
- That Grab’s supply of drivers did decline during the third quarter.
- That Grab had to continue to invest in driver and consumer incentives.
- That the company’s results would suffer from this.
- That therefore Grab’s “positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.”
After the March 3, 2022 announcement, Grab’s stock fell by 37.3%, closing at $3.28 per share.
Article Type: LawsuitTopic: Securities
Most Recent Case Event
Grab (GRAB) False or Misleading Statements and Stock Losses Complaint
March 16, 2022
Grab Holdings Limited (NASDAQ: GRAB) “became a public entity via a business combination with Altimeter Growth Corp.” on December 1, 2021. Yet by March 3, 2022, the complaint for this class action alleges, it was announcing a large loss. The complaint claims the company, along with its CEO and CFO, made “materially false and misleading statements, as well as failed to disclose material adverse facts about the Company’s business,” in violation of the Securities Exchange Act of 1934.
Grab (GRAB) False or Misleading Statements and Stock Losses ComplaintCase Event History
Grab (GRAB) False or Misleading Statements and Stock Losses Complaint
March 16, 2022
Grab Holdings Limited (NASDAQ: GRAB) “became a public entity via a business combination with Altimeter Growth Corp.” on December 1, 2021. Yet by March 3, 2022, the complaint for this class action alleges, it was announcing a large loss. The complaint claims the company, along with its CEO and CFO, made “materially false and misleading statements, as well as failed to disclose material adverse facts about the Company’s business,” in violation of the Securities Exchange Act of 1934.
Grab (GRAB) False or Misleading Statements and Stock Losses Complaint