Waitr Holdings, Inc. Class Action Lawsuit

11 days left to seek lead plaintiff status

Case Summary

Company Name
Waitr Holdings, Inc.
Stock Symbol
Class Period
May 17, 2018 to August 8, 2019, including those who acquired shares in connection with Waitr’s November 2018 going public transaction with Landcadia and its May 2019 secondary offering
Motion Deadline
November 26, 2019
Western District of Louisiana

On September 26, 2019, the Waitr Holdings, Inc. class action lawsuit was filed charging Waitr Holdings, Inc. (“Waitr”), certain of its officers and/or directors, and one of the underwriters of Waitr’s May 2019 secondary offering (the “Secondary Offering”) with violations of the Securities Exchange Act of 1934 and/or the Securities Act of 1933. The Waitr class action lawsuit was commenced in the Western District of Louisiana on behalf of investors who purchased or acquired Waitr securities between May 17, 2018 and August 8, 2019 (the “Class Period”), including those who acquired shares in connection with Waitr’s November 2018 going public transaction with Landcadia Holdings, Inc. and Waitr’s Secondary Offering and is captioned Welch v. Meaux, No. 2:19-cv-01260.

Waitr, an online food ordering and delivery services company, was formed through a going public transaction and business combination between Waitr Inc. (“Old-Waitr”) and Landcadia in November 2018.  On December 11, 2018, Waitr announced it had entered into an agreement to acquire BiteSquad.com, LLC, another online restaurant delivery service for $321 million.

On May 16, 2018, Landcadia announced it would acquire Old-Waitr for stock and cash valued at $308 million (the “Going Public Transaction”).  In connection with the Going Private Transaction, defendants filed a Proxy Statement and a Registration Statement with the U.S. Securities and Exchange Commission (“SEC”) on May 17, 2018 and November 19, 2018, respectively (the “Going Public Filings”). 

On May 16, 2019, Waitr once again offered more than 6.75 million shares of its common stock at $7.40 per share pursuant to a Proxy/Prospectus, Prospectus Supplement, and Registration Statement filed with the SEC on April 26, 2019, and May 16 and 17, 2019, respectively (the “Secondary Offering Filings”).

The Waitr class action lawsuit alleges that during the Class Period and in the Going Public and Secondary Offering Filings, defendants made false and misleading statements and/or failed to disclose adverse information regarding Waitr’s business and operations.  Specifically, defendants failed to disclose: (i) that at the time it went public, Waitr had artificially bolstered profits and revenues by raising prices in breach of its customer contracts and failing to properly reimburse its drivers, Waitr’s software provided little or no competitive advantages, and Waitr’s take rate of 15% was unsustainable; (ii) the purported risk factors in the Secondary Offering Filings were not contingencies, as stated in the filings, but were, in fact, already negatively impacting Waitr at the time of the Secondary Offering, including significant problems with the integration of Bite Squad; (iii) that, in order to achieve defendants’ projected financial results, Waitr would have to make drastic and risky changes to its business model; (iv) that defendants were planning to update Waitr’s Master Services Agreement and it would be necessary to impose large price increases in order to remain solvent; and (v) that, as a result of the significant problems with the Bite Squad integration, by May 2019, defendants knew that management had become so distracted by the attempted integration that Waitr’s operations had been significantly impacted.  As a result of this information being withheld from the market, Waitr securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of $14.15 per share.

Then on August 8, 2019, after the market closed, Waitr revealed disappointing financial results for the second quarter of 2019, including that its integration of Bite Squad was not proceeding according to plan, that Waitr was laying off personnel, and that losses were running far ahead of plan and at a rate that eclipsed historical growth trends.  In addition, Waitr announced the resignation of its Chief Executive Officer, co-founder Christopher Meaux.  Following this news, the price of Waitr shares fell 50% to close at $1.89 per share on August 9, 2019, a decline of nearly 75% from the Secondary Offering price and a decline of 86% from the stock’s Class Period high.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Waitr securities during the Class Period, Waitr securities in connection with the Going Public Transaction, and in connection with the Secondary Offering to seek appointment as lead plaintiff in the Waitr class action lawsuit.  A lead plaintiff will act on behalf of all other class members in directing the Waitr class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Waitr class action lawsuit.  An investor’s ability to share in any potential future recovery of the Waitr class action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the Waitr class action lawsuit or have questions concerning your rights regarding the Waitr class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at bcochran@rgrdlaw.com.  Lead plaintiff motions for the Waitr class action lawsuit must be filed with the court no later than November 26, 2019.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

Class Period: May 17, 2018 - August 8, 2019, including those who acquired shares in connection with Waitr’s November 2018 going public transaction with Landcadia and its May 2019 secondary offering
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