Case Summary

Maplebear Inc. d/b/a Instacart

NASDAQ: CART

Case Details

  • Stephens v. Maplebear Inc. d/b/a Instacart et al.
  • Class Period:September 16, 2023 - October 01, 2023
  • Date Filed:January 25, 2024
  • Jurisdiction:U.S. District Court, Northern District of California
  • Docket Number: 5:24-cv-00465
  • Lead Plaintiff Deadline: March 25, 2024
Days Left to
Seek Plaintiff
33

Overview

A class action lawsuit has been filed against Maplebear Inc., d/b/a Instacart (“Instacart” or the “Company”) (NASDAQ: CART) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934. The lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired (a) Instacart common stock pursuant and/or traceable to the Offering Documents issued in connection with the Company’s initial public offering conducted on or about September 19, 2023; and/or (b) Instacart securities between September 19, 2023, and October 1, 2023, both dates inclusive, (the “Class Period”). Investors have until March 25, 2024, to seek appointment as lead plaintiff of the Instacart class action lawsuit.

Instacart provides online grocery shopping services to households in North America. The Company sells and delivers a range of products in the food, alcohol, consumer health, pet care, and ready-made meals categories, in addition to others. The Company offers its services through a mobile application and website, while also providing software-as-a-service solutions to retailers.

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 lawsuit alleges that the Offering Documents were negligently prepared and, as a result, contained untrue statements of material facts 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 to this, the lawsuit 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: (1) Instacart had overstated the extent to which online grocery shopping and delivery habits among consumers were accelerating; (2) Instacart had downplayed the extent of the competition that it faced in the online grocery shopping and delivery market; (3) accordingly, Defendants overstated the Company’s post-IPO growth, business, and financial prospects; and (4) 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 has 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 lawsuit was filed, Instacart’s common stock continued to trade below the $30.00 per-share Offering price, damaging investors.

*            *            *

If you purchased or otherwise acquired (a) Instacart (NASDAQ: CART) common stock pursuant and/or traceable to the Offering Documents issued in connection with the Company’s initial public offering conducted on or about September 19, 2023; and/or (b) Instacart securities between September 19, 2023 and October 1, 2023, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Instacart lawsuit is March 25, 2024.

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