Shareholder Alert: Robbins LLP Reminds Investors Waitr Holdings Inc. (WTRH) Sued for Misleading Shareholders
November 06 2019 - 8:20PM
Business Wire
Shareholder rights law firm Robbins LLP reminds investors that a
purchaser of Waitr Holdings Inc. (NASDAQ: WTRH) filed a class
action complaint for alleged violations of the Securities Exchange
Act of 1933 and 1934 in connection with its going public
transaction and business combination in November 2018, its
secondary offering in May 2019, and alleged misstatements between
May 17, 2018 and August 8, 2019. Waitr provides online food
ordering and delivery services in the Southeastern United
States.
If you suffered a loss as a result of Waitr's misconduct, click
here.
Waitr Holdings Inc. (WTRH) Accused of Misleading
Shareholders
According to the complaint, Waitr's officers touted the
company's ability to provide services to restaurant customers at a
low take rate and its efficient labor model. Contrary to Waitr's
representations, Waitr could not afford to maintain its competitive
15% take rate, and in reality, only initially sustained this rate
by engaging in illegal and improper activities that inflated
revenue and created the illusion of financial stability. Following
its May 2019 secondary offering, Waitr implemented a draconian
price increase and finally revealed its adverse financial
situation, inciting calls for boycotts from its customers. Then, on
August 8, 2019, Waitr reported massive losses, terrible operating
performance, huge cost increases, diminishing prospects, and
accelerating losses for second quarter 2019 and announced the
termination of its CEO. On this news, Waitr's stock price fell 50%
to close at $1.31, an almost 90% decline from its class period high
of $15.00.
Waitr Holdings Inc. (WTRH) Shareholders Have Legal
Options
Contact us to learn more:
Leo Kandinov (800) 350-6003 lkandinov@robbinsllp.com Shareholder
Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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Leo Kandinov Robbins LLP 5040 Shoreham Place San Diego, CA 92122
lkandinov@robbinsllp.com (619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com
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