Gibbs Law Group Urges Grab Investors to Submit Losses Before Court Deadline
A Grab Holdings Class Action Lawsuit has been filed on behalf of investors who lost money in Grab Holdings (NASDAQ: GRAB). The stock currently has a Sentiment Score of Bearish from InvestorsObserver, and according to Seeking Alpha, shares of the Southeast Asian rideshare and food delivery app are down over 80% from its all-time high in November 2021. Grab’s managing director Nguyen Thai Hai Van resigned at the end of April, and its head of technology Wui Ngiap Foo left the company at the end of March, according to Newsnpr and LinkedIn. If you purchased or acquired Grab Holdings shares between November 12, 2021, and March 3, 2022, please reach out to Gibbs Law Group to discuss your legal rights and options before the May 16, 2022 deadline to submit losses.
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
In the largest SPAC deal to date, Grab Holdings went public in December 2021 via merger with Altimeter Growth Corp, but since then, the stock price has plummeted, in part because the company has failed to deliver the financial performance it forecasted in its Investor Presentation prior to the merge, according to Seeking Alpha.
In its quarterly report released on March 3, 2022, Grab Holdings mentioned that it had invested heavily in bumping incentives to bring in drivers as pandemic threats eased and the demand for ride-shares grew. According to The Motley Fool, Partner and Consumer incentives rose by 15% and 73% year over year, respectively. But despite Grab’s optimistic forecast following the company’s IPO in December 2021, revenue plummeted 44% to $122 million in their fourth quarter, widening its losses to $1.1 billion–much higher than its $635 million loss a year prior.
According to CNBC, Grab poured a large amount of money into incentives to maintain its market leader position, and to bring in drivers to “[catch] up in terms of supply.” However, as more people began to dine out more and more 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 its fourth quarter alone.
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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