Grab has faced several lawsuits, including a class-action lawsuit related to its stock price decline following its listing, and a lawsuit by a management consultancy over a domain name dispute. There was also a legal battle with the Malaysian Competition Commission (MyCC) concerning alleged anti-competitive practices.
Here's a more detailed breakdown:
1. Class Action Lawsuit (US):
Following Grab's initial public offering (IPO) and subsequent stock price drop, several US law firms investigated potential claims against Grab for alleged false and misleading statements.
These firms encouraged shareholders who had incurred losses to contact them to potentially participate in a class-action lawsuit.
The core of the allegations centered on whether Grab had made misleading statements about its financial performance and prospects, particularly regarding driver supply and revenue.
Robbins LLP and Levi & Korsinsky were among the firms that initiated investigations and sought lead plaintiffs for the class action.
A settlement was reached in this case, where Grab agreed to pay $80 million to investors, according to TradingView.
2. Domain Name Dispute (Singapore):
3 Corporate Services sued Grabtaxi Holdings (a Grab unit) over a dispute involving the sale of a domain name.
The Singapore High Court dismissed the lawsuit, finding that 3 Corporate Services had engaged in "cybersquatting".
The court deemed that the company had registered the domain name in bad faith with the intention to sell it at a high price.
3. Legal Battle with MyCC (Malaysia):
The Malaysian Competition Commission (MyCC) proposed a fine of RM86.76 million (approximately US$18.6 million) on Grab for alleged anti-competitive practices related to its 2018 merger with Uber.
The MyCC alleged that Grab had created barriers to entry in the ride-hailing market by imposing restrictive clauses on drivers.
Grab challenged the MyCC's decision, citing procedural issues and questioning the regulator's actions.
The Court of Appeal eventually allowed Grab's judicial review, stating that Grab did not need to exhaust the domestic inquiry process.
Ultimately, the legal battle with MyCC concluded with Grab winning the judicial review.
4. Other Investigations:
Gibbs Law Group was also investigating potential legal claims on behalf of GRAB investors.
This investigation was also related to the stock price drop after the IPO.
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