SAN DIEGO & SAN FRANCISCO--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Uber Technologies, Inc. (NYSE: UBER) has filed a class action complaint against the company for alleged violations of the Securities Act of 1933 pursuant to its May 2019 initial public offering ("IPO"). Uber develops and supports proprietary technology applications that enable independent providers of ridesharing and meal delivery services to transact with end-users.
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Uber Technologies, Inc. (UBER) Accused of Misleading Investors in IPO
According to the complaint, Uber held its initial public offering on May 10, 2019, offering 180,000,000 common shares at $45 per share for net proceeds of approximately $8 billion. In its registration documents, Uber touted that it would continue to grow its business through expansion of ridesharing and Uber Eats into new markets, expansion of its e-bikes and e-scooters, and expansion of Uber Freight. However, these statements failed to disclose Uber was rapidly increasing subsidies for customer's rides and meals to motivate drivers and consumers to use its platform, swelling the Company's marketing expenses and cutting key areas that undermined its growth. By September 2019, Uber's true financial situation had been revealed with reported losses of $5.2 billion in its latest form 10-Q and the termination of over 800 employees. Since its disclosures, Uber's stock has significantly declined, now trading at around $30 per share, representing a 33% decline from its IPO price.
Uber Technologies, Inc. (UBER) Shareholders Have Legal Options
Robbins Arroyo 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.
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