Several US law firms mainly Robbins LLP and Gibbs Law Group are investigating Grab Holdings on behalf of shareholders who lost money for potential securities law violations.
It is reported that Grab's officers and directors are also investigated to determine whether fiduciary duties and securities laws were breached in relation to the company's revenue plunge in the fourth quarter (Q4) of 2021.
On 3 March 2022, Grab reported its Q4 revenue decline of over 44% from the previous quarter and reported a net loss of US$1.1 billion.
Chief financial officer of Grab attributed the poor financial results to "investing heavily" in incentives to get drivers back to the platform as the driver demand went up.
Following the announcement, Grab shares fell over 37% to US$3.28 per share on 3 March.
It is mentioned in the class action complaint that Grab failed to disclose to investors regarding the decline of driver supply during the third quarter.
According to Straits Times, at least eight law firms have announced their intention to investigate Grab for false and misleading statements, possible fraud and other violations of US federal securities laws early March 2022.
Grab, founded in 2012, is a Southeast Asian technology company based in Singapore and Indonesia.
The company offers ride-hailing, food and grocery delivery, and digital payments services via its super-app.
Last December, Grab went public in the world's largest blank-cheque deal with a US$40 billion valuation.
