Grab Holdings Limited (GRAB) Experienced Significant Decline in Revenue in Fourth Quarter 2021
A shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Grab Holdings Limited (NASDAQ: GRAB) securities between November 12, 2021 and March 3, 2022, for violations of the Securities Exchange Act of 1934. Grab offers a superapp that operates primarily across the deliveries, mobility, and digital financial services sectors in Southeast Asia.
According to the complaint, on March 3, 2022, Grab disclosed its fourth quarter revenues had declined 44% from the previous quarter and reported a $1.1 billion loss for the quarter. Grab’s Chief Financial Officer attributed the poor financial results to “invest[ing] heavily” in driver incentives and stated that it would take one or two quarters “to get that equilibrium between drivers and riders, between supply and demand.” On this news, the Company’s stock price fell over 37%, to close at $3.28 per share on March 3, 2022.
During the class period, defendants failed to disclose to investors that Grab’s driver supply declined during the third quarter and as a result, Grab continued to invest heavily in driver and consumer incentives to “preemptively recalibrate driver supply.” Consequently, the Company’s financial results would be adversely impacted, including, among other things, a significant decline in revenue.
Next Steps: If you acquired shares of Grab Holdings Limited (GRAB) between November 12, 2021 and March 3, 2022, you have until May 16, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.