Gibbs Law Group Investigates Potential Securities Law Violations
Gibbs Law Group announces that a Grab Holdings Class Action Lawsuit has been filed on behalf of investors who lost money in Grab Holdings (NASDAQ: GRAB). Previously, shares of the Southeast Asian rideshare and food delivery app company Grab Holdings crashed over 37% on Thursday, March 3, 2022, after the surprising disclosure that the company’s revenue had dropped 44% in its fourth quarter. If you invested in Grab Holdings between November 12, 2021, and March 3, 2022, please reach out to Gibbs Law Group as soon as possible to learn about your legal rights.
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
According to their quarterly report, Grab Holdings said that they had heavily invested in raising incentives to bring in drivers, as the demand for ride-shares grew due to the continuously decreasing threat from the pandemic in recent months. However, despite Grab’s optimistic forecast following the company’s debut in December 2021, revenue plummeted 44% to $122 million in their fourth quarter, widening its lost to $1.1 billion – much higher than its $635 million loss a year earlier.
As stated in an article by CNBC, GRAB channeled a large amount of money into incentives to hold on to its market leader position, and to bring in drivers to “[catch] up in terms of supply”. However as more people started to dine out as the threat from COVID lessened, demand for food delivery services dropped and revenue from Grab’s delivery unit plummeted 98%. Revenue from its mobility unit, which was accountable for 85% of overall sales, declined 27% in their fourth quarter alone.
Grab Holdings went public in December 2021 via a SPAC merger with Altimeter Growth Corp (NASDAQ: AGC). SPACs provide an alternative to the traditional IPO process and serve the primary purpose of raising investor proceeds to eventually acquire a private company. Investors typically buy into a SPAC before it announces, or even decides, which private company it will attempt to acquire. While SPAC investors have the potential to realize significant gains, they are also much more vulnerable to market volatility and other types of fraud.
Following the release of their fourth quarter results, Grab Holdings’ stock plummeted over 37% in intraday trading on Thursday, March 3, 2022, causing significant harm to investors.
On Tuesday, March 29th, 2022, Bloomberg announced that GRAB’s head of both technology and integrity Wui Ngiap Foo will be departing the company after 7 years.
What Should Grab Investors Do?
If you invested in Grab Holdings, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Grab Holdings has violated federal securities laws.
About Gibbs Law Group
Gibbs Law Group represents individual and institutional investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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