Case Name: Uber Technologies

Settlement Fund: $200,000,000

Claim Filing Deadline: 11/20/2024

Class Period: 5/10/2019 - 11/5/2019

Class definition: All persons and entities that purchased or otherwise acquired Uber’s publicly traded common stock pursuant and/or traceable to the Offering Documents for Uber’s IPO, and who were damaged thereby, i.e., those who purchased shares during the Traceability Period of May 10, 2019 through November 5, 2019.

What this case is about:

Uber Technologies, aka "Uber," a name that is now synonymous with "taxi" or "cab," has settled a securities litigation for $200 million over allegations it misled investors before its IPO.

Plaintiffs allege that at the time of its IPO, Uber was subsidizing rides and meals (don't forget Uber Eats) to preserve its market share while cutting costs in a way that inhibited growth. Thus, according to plaintiffs, the company's registration statements were materially inaccurate, misleading, and incomplete.

In their complaint, the plaintiff's quote one venture capitalist who called the IPO a "trainwreck," and cited the New York Times, who wrote that, "While Uber raised $8.1 billion from its offering and reaped billions of dollars in returns for its early investors and founders, what should have been a climactic moment for a transportation colossus instead became an embarrassment."

According to the Times, Morgan Stanley and Goldman Sachs both valued Uber at $120 billion about nine months before the IPO. By the time of the IPO on May 10, 2019, the actual value was $82.4 billion and the opening price was $45 per share. By the end of the day the price dropped by 7%.

Analysts blame factors both within the company and outside it for the lackluster launch, from slow growth in Latin America to the fact the stock market was reeling from the trade war with China. Plaintiffs, of course, focused on the factors within the company, and Uber—well, they deny everything. As the settlement notice notes, “Defendants have denied and continue to deny any fault, liability, or wrongdoing of any kind, deny that they have committed any act or omission giving rise to any liability or violation of law, and deny that Class Representatives and the Class have suffered any loss attributable to Defendants’ actions.” So there.

How CCC can help

IPOs are often high volume trading events, and IPOs of companies with apps everyone has in their phone are high volume events indeed. Some firms may look at the $200 million fund as a great recovery opportunity but wince at the thought of retrieving all those trades from all those accounts.

CCC is adept at retrieving vast amounts of data, no matter how old or what format it is in. We likewise can consolidate that trade data into a clean, readable format for smooth claims recovery.

If you’d like to help your firm or your clients take part in the Uber settlement, let us know and we can start the process of filing claims today. And if you have any questions about these or any other settlement that crosses your path, just give us a call.