Grubhub Moves to Toss Shareholder Suit Over Expansion Plan

Grubhub Inc. asked a federal court in Illinois to dismiss a shareholder suit targeting the company’s statements about a failed market expansion plan, saying the challenged statements about customer growth and revenue were true at the time they were made.

A proposed class of stockholders sued the delivery platform in 2019, alleging it misled them about order declines, lower revenues, and problems with its exclusive partnership business model.

The company’s 2018 market expansion plan in 2018 included new diner advertising, delivery expansion, and accelerated brand sales efforts.

But the new customers Grubhub attracted with this investment were “more prone to ...