Scott+Scott Attorneys at Law LLP Files Securities Class Action Against Ibotta, Inc. (NYSE: IBTA)

/EIN News/ -- NEW YORK, May 21, 2025 (GLOBE NEWSWIRE) -- Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, has filed a securities class action lawsuit in the United States District Court for the District of Colorado against Ibotta, Inc. (“Ibotta” or the “Company”) (NYSE: IBTA), and certain of its directors, officers, and the underwriters of Ibotta’s April 18, 2024 initial public offering (“IPO”) (collectively, “Defendants”). The Class Action asserts claims under §§11, 12(a)(2), and 15 of the Securities Act of 1933 (15 U.S.C. §§77k, 77l(a)(2), and 77o). The Class Action also asserts claims under §§10(b), 20A, and 20(a) of the Securities Exchange Act of 1934 (15 U.S.C. §§78j(b), 78t-1(a), 78t(a)) and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder (17 C.F.R. §240.10b-5) on behalf of all persons other than Defendants who purchased or otherwise acquired Ibotta securities between April 18, 2024, and February 26, 2025, inclusive (the “Class Period”), and were damaged thereby (the “Class”). The Class Action filed by Scott+Scott is captioned: Valentine v. Ibotta, Inc., et al., Case No. 25-cv-1615.

LEAD PLAINTIFF DEADLINE ON JUNE 16, 2025

Ibotta is a technology company that allows consumer packaged goods (“CPG”) brands to deliver digital promotions to consumers through a single network called the Ibotta Performance Network (“IPN”).

The Class Action alleges that, during the Class Period, Defendants made misleading statements and omissions regarding the Company’s business, financial condition, and prospects. Specifically, Defendants made false and misleading statements and omissions that concealed from investors that: (1) Ibotta’s data measurement system did not provide accurate, precise, and real time client campaign and consumer data measurement; (2) the Company’s business mix had shifted and was generating less revenue; and (3) Ibotta had “exhausted” its clients’ budgets, negatively impacting fourth quarter 2024 revenue and expected first quarter 2025 revenue.

As the truth about Ibotta’s business reached the market, the price of Ibotta’s stock suffered significant declines, harming investors. For example, on August 13, 2024, after market hours, the Company released its second quarter 2024 financial results. During the associated earnings call, the Company reported a “dramatic mix shift” in its business from its direct to consumer (“D2C”) platform redemptions and ad revenue to third party redemptions. As a result, Ibotta reported a 39% year-over-year decrease in redemptions from redeemers and a 4% year-over-year decrease in revenue from redeemers. On this news, Ibotta’s stock price fell $15.53, or nearly 27%, to close at $42.66 on August 14, 2024.

After market hours on November 13, 2024, the Company released its third quarter 2024 financial results. Although Ibotta reported that it had “exhausted” clients’ budgets “faster than anticipated.” Ibotta also called out that clients had not increased budgets to meet addressable demand. The Company told investors that it expected D2C redemption revenue to decrease another 20% in 2025 after a 22% decrease in 2024. On this news, the Ibotta’s stock price fell $9.38, or nearly 13%, to close at $65.55 on November 14, 2024.

Finally, after market hours on February 26, 2025, the Company released its fourth quarter 2024 and full year 2024 financial results. The Company reported only 4% revenue growth—well below expectation—because of budget constraints. On this news, Ibotta’s stock price fell $29.08, or nearly 46%, to close at $34.09 on February 27, 2025.

LEAD PLAINTIFF DEADLINE ON JUNE 16, 2025

If you purchased Ibotta securities pursuant and/or traceable to the Company’s IPO or during the Class Period, and were damaged thereby, you are a member of the “Class” and may be able to seek appointment as lead plaintiff.

If you wish to apply to be lead plaintiff, a motion on your behalf must be filed with the U.S. District Court for the District of Colorado no later than June 16, 2025. The lead plaintiff is a court-appointed representative for absent class members of the Class. You do not need to seek appointment as lead plaintiff to share in any Class recovery in the Class Action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member.

If you wish to apply to be lead plaintiff, please contact attorney Nicholas Bruno at (888) 398-9312 or at nbruno@scott-scott.com.

What Can You Do?

You may contact an attorney to discuss your rights regarding the appointment of lead plaintiff or your interest in the Class Action. You may retain counsel of your choice to represent you in the Class Action.

About Scott+Scott

Scott+Scott is an international law firm known for its expertise in representing corporate clients, institutional investors, businesses, and individuals harmed by anticompetitive conduct or other forms of wrongdoing, including securities law and shareholder violations. With more than 100 attorneys in eight offices in the United States, as well as three offices in Europe, our advocacy has resulted in significant monetary settlements on behalf of our clients, along with other forms of relief. Our highly experienced attorneys have been recognized for being among the top financial lawyers in 2024 by Lawdragon, WWL: Commercial Litigation 2024, and Legal 500 in Antitrust Civil Litigation, and have received top Chambers 2024 rankings. In addition, we have been repeatedly recognized by the American Antitrust Institute for the successful litigation of high-stakes anticompetitive claims in the United States.

To learn more about Scott+Scott, our attorneys, or complex case resolution, please visit www.scott-scott.com.

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CONTACT:
Nicholas S. Bruno
Scott+Scott Attorneys at Law LLP
230 Park Avenue, 24th Floor, New York, NY 10169
(888) 398-9312
nbruno@scott-scott.com