Maplebear Inc. d/b/a Instacart
Exchange: NASDAQ
Ticker: CART
Date of Filing: 01/26/2024
Court: Northern District of California
Filing Deadline

03/25/2024

TWERSKY LAW GROUP Notifies Maplebear Inc. d/b/a Instacart (CART) Investors of Class Action

Instacart – Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against Maplebear Inc. d/b/a Instacart (“Instacart” or “the Company”) (NASDAQ: CART) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired Instacart securities from September 16, 2023 through October 1, 2023 (the “Class Period”). Investors who acquired Instacart securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is March 25, 2024.

The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased Instacart securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.

 

ALLEGATIONS AGAINST INSTACART

On August 25, 2023, Instacart filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) in connection with the IPO, which, after several amendments, was declared effective by the SEC on September 18, 2023 (the “Registration Statement”). On September 19, 2023, pursuant to the Registration Statement, Instacart’s common stock began publicly trading on the Nasdaq Global Select Market (“NASDAQ”) under the ticker symbol “CART”. On September 20, 2023, Instacart filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (the “Prospectus” and, collectively with the Registration Statement, the “Offering Documents”). Pursuant to the Offering Documents, Instacart and other selling stockholders identified in the Prospectus sold 14.1 million and 7.9 million shares of the Company’s common stock to the public, respectively, at the Offering price of $30.00 per share for total proceeds of approximately $400 million and $224 million to Instacart and the selling stockholders, respectively, after applicable underwriting discounts and commissions. The complaint alleges that the Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation. In addition, the complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (i) Instacart had overstated the extent to which online grocery shopping and delivery habits among consumers were accelerating; (ii) Instacart had downplayed the extent of the competition that it faced in the online grocery shopping and delivery market; (iii) accordingly, Defendants overstated the Company’s post-IPO growth, business, and financial prospects; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times. On September 22, 2023, Reuters published an article noting, among other things, that Instacart’s stock price was falling after “lukewarm analyst reports” indicated that the Company would struggle from heavy competition. For example, the article noted that “BTIG analyst Jake Fuller gave Instacart a ‘neutral’ rating and warned that the company faces heavy competition from DoorDash (DASH.N) and Uber Technologies (UBER.N) in the slowly expanding market of grocery delivery.” On this news, Instacart’s stock price fell $0.65 per share, or 2.12%, to close at $30.00 per share on September 22, 2023. Then, on October 2, 2023, investment research firm Gordon Haskett initiated coverage of Instacart with a “hold” rating, stating that it “ha[s] doubts that online grocery delivery adoption will continue to materially increase at a time when consumers are becoming increasingly cautious about spending”, while similarly citing the competitive environment in the online grocery shopping and delivery market as a headwind to the Company’s business. On this news, Instacart’s stock price fell $2.73 per share, or 9.2%, to close at $26.96 per share on October 2, 2023. As of the time the complaint was filed, Instacart’s common stock continues to trade below the $30.00 per share Offering price, damaging investors.

 

ABOUT INSTACART

  • Instacart is a widely used online grocery delivery and pick-up service that has transformed the way people shop for groceries. Founded in 2012, Instacart connects customers with personal shoppers who pick and pack items from local supermarkets, delivering them to the customers’ doorsteps in as little as an hour. The platform offers a user-friendly mobile app and website, allowing users to browse through a variety of grocery stores, select their preferred products, and schedule convenient delivery times. Instacart’s success is attributed to its convenience, time-saving features, and the ability to cater to the diverse needs and preferences of consumers. The service has become especially popular, providing an efficient solution for those seeking a convenient and flexible grocery shopping experience.

 

JOIN THIS CASE

It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in Instacart during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is March 25, 2024. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.

Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.



DOCUMENTS


COMPLAINT

PLEASE READ THE COMPLAINT  DOCUMENT BEFORE SIGNING UP FOR THIS CASE.

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