BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Uber Technologies, Inc. (“Uber” or the “Company”) (NYSE: UBER) securities pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s May 2019 initial public offering (“IPO”). Uber investors have until December 3, 2019 to file a lead plaintiff motion.
Investors suffering losses on their Uber investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
In May 2019, the Company completed its initial public offering (“IPO”) in which it sold 207 million shares at $45 per share.
On August 8, 2019, Uber announced its second quarter 2019 financial results, reporting $5.24 billion loss and $2.87 billion revenue. The Company also disclosed that its ridesharing revenue only grew 2% and that its sales and marketing expenses had increased by $507 million, or 71%, due to driver incentives, consumer discounts, promotions, refunds, and credits.
Since the IPO, Uber’s stock has traded as low as $36.45 per share, significantly below the $45 offering price.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that at the time of the IPO, Uber was rapidly increasing subsidies for drivers and customer's rides and meals in a bid for market share, which caused the Company's sales and marketing expenses to swell; (2) that Defendants were cutting (or planned to cut) costs in key areas that undermined the Company's central growth opportunities; and (3) that as a result, defendants statements about Ubers business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Uber securities have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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