The U.S. Securities and Exchange Commission announced settled charges against GrubMarket Inc., a private California-based e-commerce food distributor, for providing investors with financial information that overstated historical revenues by approximately USD 550 million. Between November 2019 and February 2021, GrubMarket raised about USD 80 million in a private Series D offering and emailed prospective investors an investor presentation and financial statements that were used in investment decisions. Over the same period, the company used a different set of financial information for other corporate purposes, including tax filings, reflecting significantly lower historical revenues. The SEC found GrubMarket should have known the investor-facing figures were unreliable and that it failed to disclose the discrepancy until after the fundraising round closed. Without admitting or denying the findings, GrubMarket agreed to a cease-and-desist order and to pay a USD 8 million civil penalty.
U.S. Securities & Exchange Commission 2025-01-17
U.S. Securities and Exchange Commission charges GrubMarket with overstating revenue by about USD 550 million and imposes USD 8 million penalty
The U.S. Securities and Exchange Commission settled charges with GrubMarket Inc. for overstating historical revenues by approximately USD 550 million in investor communications. GrubMarket raised USD 80 million in a Series D offering using inflated financial figures, while using lower figures for other corporate purposes. The company agreed to a cease-and-desist order and an USD 8 million civil penalty without admitting or denying the findings.