Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Ibotta To Contact Him Directly To Discuss Their Options
If you purchased or otherwise acquired stock of Ibotta pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with Ibotta’s April 18, 2024 initial public offering (the “IPO”) and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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NEW YORK, April 26, 2025 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Ibotta, Inc. (“Ibotta” or the “Company”) (NYSE: IBTA) and reminds investors of the June 16, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose risks concerning Ibotta’s contract with The Kroger Co. (“Kroger”). Kroger’s contract was at-will, and Ibotta failed to warn investors that a large client could cancel their contract with Ibotta without warning. Despite providing a detailed explanation of the terms of Ibotta’s contract with another large customer, there was not a single warning of the at-will nature of Kroger’s contract. 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. When the true details entered the market, the lawsuit claims that investors suffered damages.
On or around April 13, 2024, Ibotta conducted its initial public offering of 6.6 million shares priced at $88.00 per share.
Then, on August 13, 2024, Ibotta issued a press release reporting its financial results for the second quarter of 2024. In the results, Ibotta reported, among other items, a net loss of $34.0 million, attributable to operating expenses that more than doubled year-over-year. Ibotta also provided a third quarter revenue forecast in the range of $91 million to $96 million, below consensus estimates.
Following this news, Ibotta stock dropped $15.53 per share, or 26%, to close at $42.66 on August 14, 2024.
On February 26, 2025, after market hours, Investing.com published an article entitled “Ibotta shares plunge 30% as Q4 earnings miss, Q1 guidance disappoints.” This article stated, in pertinent part, that Ibotta “saw its shares tumble [. . .] after reporting fourth-quarter earnings that fell short of expectations and providing weak guidance for the first quarter of 2025.”
Following this news, Ibotta stock dropped $29.08 per share, or 46%, to close at $34.01 on February 27, 2025.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Ibotta’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Ibotta class action, go to www.faruqilaw.com/IBTA or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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