Ibotta Sued Over Kroger Contract, Share Price Decline Since IPO

Ibotta Inc. failed to warn investors that a major client could walk away at any time in the cash back app’s 2024 initial public offering paperwork, a proposed class action said.

The company should’ve disclosed the risks connected to The Kroger Co.‘s contract in those federal filings, an investor told the US District Court for the District of Colorado. Instead, Ibotta mainly provided “boilerplate warnings” about the importance of maintaining client relationships, said the complaint filed on Thursday.

“Despite providing a detailed explanation of the terms of Ibotta’s contract with Walmart, there was not a single warning of the ...