Kehoe Law Firm, P.C. is investigating potential claims on behalf of shareholders of Grubhub Inc. (“Grubhub” or the “Company”) (NYSE: GRUB) to determine whether Grubhub and certain Grubhub officers or directors breached fiduciary duties owed to Grubhub and the Company’s investors.
On July 11, 2019, the New York Post reported that New York City council member Mark Gjonaj (“Gjonaj”) asked New York’s Attorney General, Letitia James, to commence an antitrust probe of Grubhub. Specifically, the New York Post reported that the “time may have come” for New York’s Attorney General “to revisit the terms of a 2013 settlement agreement that cleared the way for Grubhub’s acquisition of Seamless.” In a letter obtained by the New York Post, Gjonaj stated that he “believe[d] that Grubhub’s outsized market share and heavy-handed tactics could lead artificially reduced competition which in turn my drive up the commissions paid by struggling locally owned restaurants.”
The New York Post also reported that “[i]n June, the City Council held a hearing on how Grubhub charges fees as high as 30% for its services and questioned Grubhub executives about [t]he [New York Post’s] reports that the company charged restaurants thousands of dollars in commissions for phone orders that never happened.”
Additionally, the New York Post reported that “New York’s Liquor Authority was developing new rules that will significantly curb the delivery industry’s ability to charge double-digit percentages for online ordering and delivery.” This news, according to the New York Post, “sent Grubhub’s shares down 4%, to $74 a share.”
If you purchased Grubhub securities, please contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the Grubhub shareholder investigation.