Gibbs Law Group Investigates Potential Securities Law Violations
OAKLAND, Calif.–(BUSINESS WIRE)–$GRAB #GRAB–Gibbs Law Group is investigating a potential Grab Holdings Class Action Lawsuit on behalf of investors who lost money in Grab Holdings (NASDAQ: GRAB). Shares of Grab Holdings plummeted over 37% on Thursday, March 3, 2022, after shocking news was announced that the company’s revenue had dropped 44% in its fourth quarter. Investors who lost money in Grab Holdings are encouraged to contact Gibbs Law Group for more information about their 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 stated that they had invested heavily in boosting incentives to bring in drivers, as the demand for ride-shares grew due to the steadily decreasing threat from the pandemic in recent months. However, despite Grab’s sunny forecast following the company’s debut in December 2021, revenue dropped 44% to $122 million in their fourth quarter, widening its lost to $1.1 billion – significantly higher than its $635 million loss a year earlier.
According to an article by CNBC, GRAB funneled a significant amount of money into incentives to retain 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 responsible 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.
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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