NEW YORK–(BUSINESS WIRE)–$IBTA #CLASSACTIONLAWSUIT–The law firm of Kirby McInerney LLP reminds investors who purchased Ibotta, Inc. (“Ibotta” or the “Company”) (NYSE:IBTA) securities to contact Thomas W. Elrod of Kirby McInerney LLP by email at [email protected], or fill out the contact form below, to discuss your rights or interests with respect to the securities fraud class action lawsuit against the Company.
The lawsuit was filed on behalf of investors who acquired Ibotta securities in connection with Ibotta’s April 18, 2024 initial public offering (“IPO”). Investors have until June 16, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The complaint alleges that defendants failed to disclose the risk concerning Ibotta’s contract with The Kroger Co. (“Kroger”) in the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with its IPO.
On April 18, 2024, Ibotta filed the final prospectus for the IPO of common stock with the SEC. In the IPO, Ibotta sold 2.5 million shares of $88.00 per share, with selling stockholders offering an additional 4 million shares. The Company received gross proceeds of approximately $206.8 million.
Under applicable SEC rules and regulations, the Registration Statement was required to disclose known trends, events or uncertainties that were having, and were reasonably likely to have, an impact on the Company’s continuing operations. The Registration Statement stated, in pertinent parts, in the Risk Factors section, that “we [Ibotta] provide offers on a white-label basis to…The Kroger Co., and other retailers” and “Our inability to maintain our relationship with our publishers on terms consistent with or better than those already in place and that are otherwise favorable to us could increase competitive pressure and/or offering pricing, and otherwise adversely affect our business, financial condition, results of operations, and prospects.” The complaint alleges that Ibotta’s statements did not properly warn investors of the risks concerning Ibotta’s contract with Kroger. Rather than disclosing the very real risk of a major client walking away at any time, Ibotta provided boilerplate warnings concerning the importance of maintaining ongoing relationships with their clients.
On August 13, 2024, after market hours, the Company filed a quarterly report on Form 10-Q for the quarter ended June 30, 2024 (“2Q 2024 10-Q”) with the SEC. The 2Q 2024 10-Q was deemed filed on August 14, 2024, by the SEC. Notably missing from the 2Q 2024 10-Q was any mention of Kroger as Ibotta’s client.
The price of Ibotta’s securities have plummeted since the IPO, closing at $47.69 per share on April 17, 2025 – a 45% decrease from its IPO price of $88.00 per share.
[LEARN MORE ABOUT THE CLASS ACTION]
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
[email protected]
