Waitr Deadline Alert: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In Waitr Holdings Inc To Contact The Firm
New York, New York--(Newsfile Corp. - November 6, 2019) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Waitr Holdings Inc (NASDAQ: WTRH) ("Waitr" or the "Company") of the November 26, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in Waitr stock or options between May 17, 2018 and August 8, 2019, inclusive (the "Class Period"), and/or those who acquired Waitr shares in connection with its November 2018 going public transaction with Landcadia or in its May 2019 Secondary Offering and would like to discuss your legal rights, click here: www.faruqilaw.com/WTRH. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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The lawsuit has been filed in the U.S. District Court for the Western District of Louisiana on behalf of all those who purchased Waitr securities between May 17, 2018 and August 8, 2019, inclusive, and/or those who acquired Waitr shares in connection with its November 2018 going public transaction with Landcadia or in its May 2019 Secondary Offering. The case, Welch v. Meaux, No. 19-cv-01260 was filed on September 26, 2019, and has been assigned to Judge Terry A. Doughty.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing 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, after market close, the Company revealed abysmal financial and operational results for the second quarter of 2019, including the resignation of its CEO, co-Founder Christopher Meaux; that its integration of BiteSquad.com, LLC, acquired in January 2019, was not proceeding according to plan; that the Company was laying off personnel; and that losses were running far ahead of plan and at a rate that eclipsed historical growth trends.
On this news, Waitr's stock price fell from $3.76 per share on August 8, 2019 to $1.89 per share on August 9, 2019-a $1.87 or 49.73% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Waitr's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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