The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Waitr Holdings Inc. (NASDAQ: WTRH) who purchased shares between May 17, 2018 and August 8, 2019, including, but not limited to, those who acquired Waitr shares in connection with the Going Public Transaction, and those who acquired shares of the Company in the May 2019 Secondary Offering. The action, which was filed in the United States District Court for the Western District of Louisiana, alleges that the Company violated federal securities laws.
In particular, the Waitr lawsuit alleges that (i) Waitr lacked a plan to achieve profitability and, contrary to the statements of Company founder Chris Meaux, Waitr was not at or near profitability and Defendants had created the illusion of financial stability by engaging in a host of illegal and improper activities each designed to inflate revenues and earnings—such as unilaterally breaking low-rate contracts and imposing significantly higher rates, and by refusing to pay drivers for mileage related expenses—both of which ultimately resulted in independent class action lawsuits; and (ii) Waitr’s technology provided no real advantage and the Company could not obtain the developer, programming, or engineering resources necessary to enhance, maintain, and develop industry leading software from its headquarter location in Lake Charles, Louisiana.
Shareholders have until November 26, 2019 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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