PHILADELPHIA, Oct. 3, 2019 /PRNewswire/ -- Berger Montague announces that a class action lawsuit has been filed against Waitr Holdings, Inc. ("Waitr" or the "Company") and other defendants on behalf of those who purchased Waitr securities between May 17, 2018, and August 8, 2019, inclusive (the "Class Period").
If you wish to discuss the claims against Waitr or have any questions concerning your rights or interests, please contact Barbara A. Podell, Esq. at (215) 875-4690 or Michael Dell'Angelo, Esq. at (215) 875-3080 or visit www.bergermontague.com. If you purchased or acquired Waitr securities during the Class Period and suffered damages, you may, no later than November 26, 2019, request that the Court appoint you lead plaintiff of the proposed Class. You do not need to be a lead plaintiff to share in any possible recovery to the Class.
Waitr is a platform for mobile food orders and delivery service from restaurants. The complaint alleges that Defendants' public statements were materially false and misleading for the following reasons:
- The Company was not on the verge of profitability because Defendants had artificially bolstered profits and revenues by unilaterally raising prices in breach of customer contracts and by failing to properly reimburse drivers for mileage expenses;
- The 15% rate which Waitr charged its customers was not sustainable or profitable;
- Waitr was not able to gain efficiencies from its full time fixed-rate labor force in order to justify charging less than its competitors;
- Waitr's financial statements, SEC filings, and Sarbanes-Oxley certifications were not accurate or reliable;
- Waitr's software provided little or no competitive advantages because of Waitr's inability to obtain sophisticated, high-level programmers and software engineers to develop the software necessary for Waitr to stay competitive; and
- Waitr was not operating according to plan nor did it maintain an adequate system of internal controls in order to eliminate material conflicts of interest.
The Complaint alleges that investors learned at the end of the Class Period that Waitr's business plan would not work because Waitr could not provide services in remote locations to small customers at a rate that the customers could afford (i.e., 15%) and that also allowed Waitr to be profitable. In fact, throughout the Class Period, Defendants had been clandestinely raising prices in breach of its low-rate agreements, were preparing for massive price increases, and were withholding mileage reimbursement payments from drivers. On August 8, 2019, Waitr shares collapsed, falling 50% following Waitr's report of abysmal financial and operational results for Q2 2019 and the resignation of its CEO.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, is a full-service national plaintiffs' class action law firm specializing in securities, antitrust, and other complex litigation on behalf of institutional and individual investors. Berger Montague is one of the most highly regarded plaintiffs' litigation firms in the country, with nearly 50 years of experience and numerous record-setting recoveries.
Barbara A. Podell
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