Ibotta, Inc. (IBTA) Investigation

The investigation focuses on the propriety of Ibotta’s disclosures of known trends in its April 22, 2024 initial public offering documents in which the company sold 2.5 million shares at $88 per share and certain selling stockholders sold an additional 4.06 million shares at the IPO price in a secondary offering.

Ibotta is a technology company that allows consumer packaged goods (“CPG”) brands to deliver digital promotions to over 200 million consumers through its network called the Ibotta Performance Network, or “IPN.” In its offering documents, Ibotta recited certain key business metrics it uses “to help us evaluate our business, identify trends affecting our performance, formulate business plans, and make strategic decisions.” These metrics include, without limitation, direct-to-consumer redemptions, direct-to-consumer redeemers, and total redemptions per redeemer.

On August 13 2024, less than 2 months after closing its IPO, Ibotta announced its Q2 2024 financial results. The company swung to a $33.9 million net loss for the quarter (compared to net income of $15.3 million during the prior year period) and nearly doubled its operating expenses compared to the prior year period.

The company also revealed that direct-to-consumer redemptions shrunk 19%, direct-to-consumer redeemers shrunk 7%, and total redemptions per redeemer shrunk 39%, all compared to the prior year period.

This news drove the price of Ibotta shares down $15.53 (-26%) on August 14, 2024 to close at $42.66, or about 48% below the IPO price.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the IBTA investigation about?

We are looking into whether Ibotta’s offering documents omitted to disclose known trends its management was seeing in its key metrics at the time of its IPO.

WHAT SHOULD I DO?

I worked at IBTA. What should I do?

If you were an employee of IBTA, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in IBTA, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any IBTA investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.