SAN FRANCISCO, May 14, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges Grab Holdings Limited (NASDAQ: GRAB) investors who suffered significant losses to submit your losses now. A securities fraud class action has been filed and investors with significant losses have an opportunity to lead the case.
Grab Holdings Limited (NASDAQ: GRAB) Securities Fraud Class Action:
The litigation focuses on Grab’s statements concerning the sustainability of its growth and business prospects.
More specifically, in Dec. 2021, Grab went public through a SPAC-merger, touting that Grab “had the largest on-demand driver supply network,” and emphasizing the company’s dramatic growth in the food delivery, digital payments, ride-hailing and financial services areas through its “super app.” The company highlighted its huge opportunity to grow further in the firm’s core businesses in Southeast Asia and other regions.
According to the complaint, Defendants made materially false and misleading statements and/or failed to disclose: (1) that Grab’s driver supply declined during the third quarter; (2) that, as a result, Grab continued to invest heavily in driver and consumer incentives to “preemptively recalibrate driver supply”; and, (3) that, as a result, the company’s financial results would be adversely impacted, including, among other things, a significant decline in revenue.
Investors learned the truth, according to the complaint, on Mar. 3, 2022, when Grab announced its first quarterly earnings report as a public company. The results were dismal. The company reported a 44% decline in Q4 revenue from the prior year’s quarter, and a whopping loss of $1.1 billion for the period. Management blamed the results on the company having to increase spending to offer higher commissions to attract drivers and greater incentives to users and partners.
This news sent the price of Grab shares sharply lower.
“We’re focused on investors’ losses and proving Grab embellished its growth prospects and failed to disclose known trends,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Grab and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Grab should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email GRAB@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895