SAN DIEGO, May 22, 2025 /PRNewswire/ -- Robbins LLP informs stockholders that a class action was filed on behalf of all persons or entities that purchased or otherwise acquired Ibotta, Inc. (NYSE: IBTA) securities pursuant and/or traceable to the registration statement and related prospectus issued in connection with Ibotta's April 18, 2024 initial public offering, or between April 18, 2024 and February 26, 2025. Ibotta purports to be a technology company that allows consumer packaged goods brands to deliver digital promotions to millions of consumers through its network called the Ibotta Performance Network.

For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.

The Allegations: Robbins LLP is Investigating Allegations that Ibotta, Inc. (IBTA) Misled Investors in Connection with its IPO

According to the complaint, during the class period, defendants 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.

The complaint alleges that on November 13, 2024, during the third quarter 2024 earnings call, Ibotta CEO Bryan Leach revealed to investors that, in 2025, the Company would undertake initiatives designed to improve performance issues and "mak[e] it easier for our clients to do business with us." Defendants also began to reveal that clients had begun moving away from Ibotta's D2C platform in favor of their own platforms, thereby reducing revenue generated from redeemers on Ibotta's D2C platform. On this news, Ibotta's stock price fell $9.38, or nearly 13%, to close at $65.55 on November 14, 2024.

According to the complaint, on February 26, 2025, during the fourth quarter 2024 and full year 2024 earnings call, Leach explained in greater detail how deficient Ibotta's data measurement technology actually was, stating that "it has become clear that we need to bring to market a more rigorous form of measurement that goes beyond the industry standard return on ad spend, or ROAS, framework." Leach also announced that Ibotta would transform into a programmatic advertising company, which shows that, at the time of the IPO, Ibotta's data measurement infrastructure was not suited for heavy reliance on third party platforms without data from its D2C platform to supplement. On this news, Ibotta's stock price fell $29.08, or nearly 46%, to close at $34.09 on February 27, 2025. By the commencement of this action, Ibotta's shares traded as low as $32.56, or a 63% drop from the $88 offering price.

What Now: You may be eligible to participate in the class action against Ibotta, Inc. Sharholders who want to serve as lead plaintiff for the class must file their papers with the court by June 16, 2025. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. 

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SOURCE Robbins LLP