United States SEC Fines e-Commerce Food Company GrubMarket $8 Million for Providing Unreliable Financial Information Overstating Revenue by $550 Million Over 5 Years & Raised $80 Million from Investors in Series D Funding from 2019 to 2021
19th January 2025 | Hong Kong
The United States Securities and Exchange Commission (SEC) has fined e-commerce food company GrubMarket $8 million for providing unreliable financial information overstating revenue by $550 million over 5 years period & raised $80 million from investors in Series D funding from 2019 to 2021. United States SEC (17/1/25): “The Securities and Exchange Commission today announced settled charges against GrubMarket Inc., a private, California-based e-commerce food distributor, for providing investors with financial information that the company should have known was unreliable and that overstated its historical revenues by approximately $550 million. According to the SEC’s Order, between November 2019 and February 2021, GrubMarket raised approximately $80 million from investors in a private Series D offering. When soliciting prospective investors in the Series D round, GrubMarket emailed them financial information, including an investor presentation and financial statements, which prospective investors incorporated into their investment analyses and decisions. At the same time, GrubMarket was using a different set of financial information, including in its tax filings, that reflected significantly lower historical revenues for other corporate purposes. In doing so, GrubMarket should have known that the financial information it was using to solicit prospective Series D investors, which overstated the company’s historical revenues by $550 million over a five-year period, was unreliable. Even so, GrubMarket did not inform any Series D investors about the significant discrepancy in historical revenues until after the fundraising round closed. The SEC’s order finds that GrubMarket violated certain antifraud provisions of the federal securities laws. Without admitting or denying the SEC’s findings, GrubMarket agreed to a cease-and-desist order and to pay an $8 million civil penalty.”
“ United States SEC Fines e-Commerce Food Company GrubMarket $8 Million for Providing Unreliable Financial Information Overstating Revenue by $550 Million Over 5 Years & Raised $80 Million from Investors in Series D Funding from 2019 to 2021 “
United States SEC Fines e-Commerce Food Company GrubMarket $8 Million for Providing Unreliable Financial Information Overstating Revenue by $550 Million Over 5 Years & Raised $80 Million from Investors in Series D Funding from 2019 to 2021
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