SEC Charges GrubMarket with Overstating Revenue to Investors by More Than $500 Million

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.