Settlement of Azar v. Grubhub Inc., et al.
The parties have reached a settlement of this action, pending in the United States District Court for the Northern District of Illinois, Eastern Division. The settlement provides for the payment of $42 million for the benefit of eligible Class Members. Lead Plaintiff City of Pontiac Reestablished General Employees’ Retirement System and City of Pontiac Police & Fire Retirement System alleged violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934, premised on Defendants’ false and misleading statements that allegedly concealed from investors that, in expanding into new territories, Grubhub, Inc. (“Grubhub” or the “Company”) was failing to build adequate restaurant density necessary to attract high-quality and profitable diners, the Company was attracting lower-quality and less-profitable diners, and the Company’s business strategy and enterprise customer contracts were hurting profitability. Lead Plaintiff alleged that the false and misleading statements artificially inflated Grubhub’s stock price and when the truth was eventually disclosed, the price of Grubhub stock declined, resulting in substantial damages to the Class.
The Class consists of all Persons who purchased or otherwise acquired Grubhub common stock between April 25, 2019 and October 28, 2019, inclusive, and were damaged thereby. Excluded from the Class are: Defendants, the current and Class Period officers and directors of the Company, the members of the immediate families and the legal representatives, affiliates, heirs, successors-in-interest, or assigns of any such excluded person, and any entity in which such excluded persons have or had a controlling interest. Also excluded from the Class are those Persons who timely and validly request exclusion from the Class pursuant to the Notice.
The settlement was approved by the Court on January 12, 2023.
If you have any questions about the settlement or the litigation, please contact the Shareholder Relations Department at 1-800-449-4900.