Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Grubhub, Aurora Cannabis, The RealReal, and Baxter International and Encourages Investors to Contact the Firm

New York, New York, UNITED STATES


NEW YORK, Jan. 02, 2020 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, reminds investors that class action lawsuits have been commenced on behalf of stockholders of  Grubhub, Inc. (NYSE: GRUB), Aurora Cannabis, Inc. (NYSE: ACB), The RealReal, Inc. (NASDAQ: REAL), and Baxter International, Inc. (NYSE: BAX). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.

Grubhub, Inc. (NYSE: GRUB)

Class Period: July 30, 2019 to October 28, 2019
Lead Plaintiff Deadline: January 20, 2020

On October 28, 2019, Grubhub announced disappointing financial results for its third fiscal quarter of 2019. The Company revealed that an important Company demand metric, daily average grubs, had actually fallen 6% sequentially despite an increase in active diners and the Company’s highly touted demand initiatives. Defendants also decreased Grubhub’s 2019 earnings and revenue projections and stated that the Company would achieve only $100 million in EBITDA for 2020, more than 70% below market expectations.

On this news, Grubhub stock decreased more than 40% on October 29, 2019, to close at $33.11 per share.

The complaint, filed November 21, 2019, alleges that during the Class Period defendants made false and misleading statements and/or failed to disclose adverse information regarding Grubhub’s business and prospects. Specifically, defendants failed to disclose, among other things, that: (i) customer orders were actually declining, despite the massive investments the Company had made to spur demand for and use of its platform; (ii) Grubhub’s new customer additions were generating significantly lower revenues as compared to historic cohorts because these customers were more prone to using competitor platforms; (iii) Grubhub’s vaunted business model under which it secured exclusive restaurant partnerships had failed, and Grubhub needed to engage in the same aggressive non-partnered sales tactics embraced by its competitors to generate significant revenue growth; (iv) Grubhub was required to spend substantial additional capital in order to grow revenues and retain market share in the face of heightened competitive dynamics and market saturation, eviscerating the Company’s profitability; and (v) Grubhub was tracking tens of millions of dollars below its revenue and earnings guidance and such guidance lacked any reasonable basis.

For more information on the Grubhub class action go to: https://bespc.com/grub

Aurora Cannabis, Inc. (NYSE: ACB)

Class Period: September 11, 2019 to November 14, 2019

Lead Plaintiff Deadline: January 21, 2020

On November 14, 2019, the Company released an earnings report in which it reported a 24% sequential decline in revenue of C$75.3 versus C$98.9 in the previous quarter. In addition to this decline in revenue, the Company also announced that plans to finalize construction of additional grow facilities in both Denmark and Canada have been delayed.

On this news, the Company’s share price fell $0.56, or nearly 17%, to close at $2.73 per share on November 15, 2019.

The complaint, filed on November 21, 2019, 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 Aurora’s revenue would decline in its first quarter of fiscal 2020 ended September 30, 2019; (2) that the Company would halt construction on its Aurora Nordic 2 and Aurora Sun facilities; and (3) that as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

For more information on the Aurora Cannabis class action go to: https://bespc.com/acb

The RealReal, Inc. (NASDAQ: REAL)

Class Period: Securities purchased pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s June 2019 initial public offering (“IPO” or the “Offering”).

Lead Plaintiff Deadline: January 24, 2020

On November 5, 2019, CNBC published an investigative report that showed that the Company’s authentication process was not as robust as it led consumers to believe. CNBC spoke with “nearly three dozen former employees and obtained internal company documents that show not everything is authenticated by an expert and employees work under strict quotas that lead to fakes being sold on the site.”

On this news, the Company’s share price fell $3.80 per share or over 19% over the next two trading days to close at $19.37 on November 6, 2019.

The complaint, filed on November 25, 2019, alleges that the Registration Statement featured false and/or misleading statements and/or failed to disclose that: (1) the Company’s employees received little training on how to spot fake items; (2) the Company’s strict quotas on its employees exacerbated product authentication issues; (3) consequently, the potential for counterfeit or mislabeled items to make it through Company’s authentication process was higher than disclosed; and (4) as a result, defendants’ statements about RealReal’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

For more information on the RealReal Class action go to: https://bespc.com/real

Baxter International, Inc. (NYSE: BAX)

Class Period: February 21, 2019 to October 23, 2019

Lead Plaintiff Deadline: January 24, 2020

On October 24, 2019, the Company disclosed an internal probe into its currency trading practices.  According to news reports, Baxter engaged in certain intra-Company transactions undertaken for the purpose of generating foreign exchange gains or losses which were not booked in accordance with generally accepted accounting principles (“GAAP”). These intra-Company transactions allegedly resulted in certain misstatements in the Company’s previously reported non-operating income related to net foreign exchange gains. The Company also reported that it has advised the Securities and Exchange Commission SEC of the internal investigation and advised investors that the Company does not expect to file its quarterly report on Form 10-Q for the period ended September 30, 2019 on a timely basis.

On this news, the price of Baxter common stock declined $8.87 per share, or 10.1%, from a close of $87.95 per share on October 23, 2019, to close at $79.08 per share on October 24, 2019.

The complaint, filed on November 25, 2019, 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 and operations. Specifically, defendants misrepresented and/or failed to disclose that: (1) certain intra-Company transactions, undertaken for the purpose of generating foreign exchange gains and losses, used foreign exchange rate conventions that were not in accordance with GAAP and enabled intra-Company transactions to be undertaken after the related exchange rates were already known; (2) the Company lacked effective internal control over financial reporting; (3) as a result, the Company’s financial statements were misstated and would likely require correction or amendment; (4) due to the Company’s internal investigation, Baxter would not be able to file its quarterly report for the period ending September 30, 2019, with the SEC on Form 10-Q in a timely manner; and (5) as a result of the foregoing, defendants’ statements about the Company’s business and operations lacked a reasonable basis.

For more information on the Baxter International class action go to: https://bespc.com/bax

About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com.  Attorney advertising.  Prior results do not guarantee similar outcomes. 

Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com