Waitr Holdings Inc. (NASDAQ: WTRH)
A class action has been filed in the United States District Court for the Western District of Louisiana on behalf of purchasers of Waitr Holdings Inc. (NASDAQ: WTRH) securities during the period between May 17, 2019 through August 8, 2019, (the “Class Period”) and/or pursuant or traceable to Waitr’s November 2018 going public transaction with Landcadia or in its May 2019 secondary public offering (“SPO”).
According to the lawsuit, defendants pursuant or traceable to Waitr’s November 2018 going public transaction with Landcadia, in its May 2019 SPO, and throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) the Company was not on the verge of profitability; (2) it was not true that the Company was providing its services at a sustainable low take rate established at 15%; (3) it was not true that Waitr was able to extract efficiencies from its full time fixed-rate labor force that was purported to allow the Company to offer its services at a lower rate than competitors; (4) its software provided little or no competitive advantages and what first-mover advantage the Company claimed existed, was quickly squandered by the inability to obtain sophisticated high-level programmers and software engineers who could enable Waitr to refine and develop the software necessary to stay competitive in its market; (5) it was not true that Waitr maintained an adequate system of internal controls so as to report and eliminate material conflicts of interest; and (6) as a result, Waitr’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
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.
If you are a current shareholder and/or purchased stock during the period between May 17, 2019 through August 8, 2019, and/or pursuant or traceable to Waitr’s November 2018 going public transaction with Landcadia or in its May 2019 secondary public offering (“SPO”) and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.