GRAB.US
id: 1380
Grab Holdings (GRAB) $80M Investor Settlement
Late claims are being considered for compensation, subject to approval.
$80,000,000
Cash SettlementS.D. New York
Court1:22-cv-02189
Case number12/02/2021
Class period Start03/03/2022
Class period End04/24/2025
Claim deadlineGrab Holdings ($GRAB) reached a settlement with investors over claims that a driver shortage led to extra spending on incentives, cutting into profits and lowering revenue.
Overview
In 2022 Grab Holdings was accused of failing to disclose how increased driver and consumer incentives impacted its profitability. Following this, $GRAB dropped by 37% and Grab Holdings faced a lawsuit from investors.
Timeline
- April 13, 2021 – Grab and Altimeter Growth announce their merger, which would enable Grab to go public through a SPAC transaction.
- December 2, 2021 – Grab began trading on NASDAQ, with less than 1% of shareholders opting for share redemption.
- March 3, 2022 – Grab disclosed a 44% quarterly revenue decline and a $1.1 billion loss, largely due to increased spending on driver and consumer incentives.
- March 3, 2022 – Following the announcement, $GRAB dropped 37.3%
- March 16, 2022 – Investors filed a lawsuit, alleging Grab misled them about the impact of incentive spending on profitability.
- January 2025 – Grab agrees to a $80M settlement with investors to resolve claims.
Background
In 2021, Grab positioned itself as Southeast Asia’s leading "superapp", offering ride-hailing, food delivery, and financial services. As it prepared to go public via a SPAC merger with Altimeter Growth, concerns arose over its financial health and reliance on heavy incentive spending to drive growth.
Grab’s financial disclosures failed to fully reveal the extent of its incentive spending, which surged over 90% in 2021 due to a pandemic-driven driver shortage.
This aggressive spending led to negative revenue in some segments, contradicting the company’s public claims of stable growth and improving profitability.
On March 3, 2022, Grab reported a 44% revenue decline and a $1.1 billion loss, primarily driven by these rising incentive costs.
Following the announcement, $GRAB dropped 37.3%, erasing significant investor value.
By 2022, investors filed a lawsuit, alleging that Grab misled them about its financial stability and the sustainability of its revenue model.
What Can Investors Expect Now?
Grab Holdings has reached a settlement with $GRAB investors over claims that a driver shortage led to extra spending on incentives, cutting into profits and lowering revenue.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Filing date
03/16/2022
Plaintiffs
Vincenzo Peccarino
Attorneys
Pomerantz LLP; Levi & Korsinsky, LLP; Bronstein, Gewirtz & Grossman, LLC
Defendants
Peter Oey; Anthony Tan; Tan Hooi Ling;
Judge
Jennifer L. Rochon
Administrator
A.B. Data Ltd
Court hearing date
05/15/2025
Exclusion deadline
04/24/2025
Objection deadline
04/24/2025
Class wide damages
$7,018,100,000
Trades matching type
FIFO