Ademi & O’Reilly, LLP is investigating possible securities fraud claims against Grubhub (NYSE: GRUB) resulting from inaccurate statements Grubhub made regarding its internal controls, business practices, financial statements and prospects.
The investigation focuses on whether Grubhub issued false and misleading statements regarding its internal controls, business practices and prospects. Specifically, since at least August 2019, (i) Grubhub’s overall growth began trending noticeably lower than expectations and annual growth was slowing and returning to a more normal longer-term state in the low double digits, with multiple players all competing for the same new diners and order growth and (ii) Grubhub’s customers were becoming “more promiscuous” with newer diners increasingly already having ordered on a competing online platforms, and existing diners are increasingly ordering on multiple platforms, resulting in “a 300+ bps impact on our growth rate for the third quarter.”