Our attorneys are investigating allegations that investors may have overpaid if they bought stock at Uber’s IPO price. Uber launched its initial public offering at $45 per share, only to see its stock drop by 18%.
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Uber's Investment Bankers Forced to Do "Naked Short" to Prop Up Stock Price
CNBC reports that Uber’s investment bank for its IPO (Morgan Stanley) had to do a “naked short” to prop up Uber’s share price. A naked short, according to Investopedia, involves “selling shares that have not been affirmatively determined to exist.” Naked short selling was banned after the 2008 financial crisis, but there is an exception for IPOs, according to CNBC.
Uber’s investment bankers were already given extra shares to sell in case the stock price needed a boost, according to CNBC. Called a “greenshoe,” extra allotments of 115% of shares are common during IPOs, reports CNBC. But Morgan Stanley needed to go beyond this 115% to try to prop up Uber’s sagging share price, says CNBC.
Some potential investors received advance notice before the IPO that Morgan Stanley would use naked short selling to ensure that Uber’s stock price remained high, according to CNBC.
Our Winning Track Record against Some of the World's Largest Companies
Our securities lawyers have recovered over a billion dollars on behalf of our clients against behemoths, such as Chase Bank, Mastercard, and Anthem Blue Cross Blue Shield. Read more about our results.
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Uber's Profit Measurements are Misleading, WSJ reports
According to the Wall Street Journal, Uber used a profit measurement that is not sanctioned by standard accounting practices. In its disclosures to investors, Uber said that it earned $940 million last year in “core platform contribution profit,” reports WSJ. When using standard accounting measures, WSJ reports, Uber had a $3 billion operating loss.
Our Securities Practice
Gibbs Law Group’s financial fraud and securities lawyers have more than two decades of experience prosecuting fraud. Our attorneys have successfully litigated against some of the largest companies in the United States, and we have recovered more than a billion dollars on our clients’ behalf.
We have fought some of the most complex cases brought under federal and state laws nationwide, and our attorneys have been recognized with numerous awards and honors for their accomplishments, including Top 100 Super Lawyers in Northern California, Top Plaintiff Lawyers in California, The Best Lawyers in America, and rated AV Preeminent (among the highest class of attorneys for professional ethics and legal skills).
Our Financial Fraud Victories
|American Express Financial Advisors Securities Litigation||$100 million cash settlement for clients alleging American Express steered them into under-performing “shelf space funds” to reap kickbacks|
|Chase Bank “Check Loan” Litigation||$100 million settlement for consumers alleging Chase offered long-term fixed-rate loans, only to later more-than-double required payments|
|Peregrine Financial Group Customer Litigation||Settlements worth $75 million for futures and commodities investors who lost millions in the collapse of Peregrine Financial Group, Inc.|
|NantHealth||Court-appointed Co-Lead Counsel in a securities class action alleging the company’s founder violated federal securities law and artificially inflated stock prices|
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