SAN DIEGO & LAKE CHARLES, La.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces 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.
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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 revenues 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 dismal financial and operational results 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
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