Grab faces possible class action suits from US shareholder rights law firms

LISTING in the US is often desired for its vibrant market and access to capital, but on the flip side, it puts the company at risk of potential litigation with class action lawsuits, with recently-listed Grab becoming the latest target.

Grab, which operates ride-hailing, food delivery and financial services businesses, merged with special purpose acquisition company Altimeter on Dec 2 and its shares opened at US$13.06. Since then, Grab's stock has traded in the region of US$5.

The company's share price dived 37 per cent in one day to US$3.17, after the company reported on March 3 that losses deepened in its fourth quarter to US$1.1 billion and revenue fell. Following that, a slew of US law firms put out press releases urging Grab shareholders to contact them to investigate claims on their behalf. At least 6 law firms have announced that they were looking for shareholders to start their investigations.