The Getswift Ltd (ASX:GSW) share price continued its precipitous plunge today, falling another 28% on huge volume to close at $0.95. The company has now given up virtually all of the last 6 months' gains:
Today and yesterday were the biggest trading days for Getswift all year, with more than 21 million shares changing hands in the past two days. The biggest day previously saw just over 5 million shares traded, according to data from Nabtrade.
Such large volume suggests that investors are thoroughly spooked by news of class actions against the company today, with Fairfax media reporting that global law firm Squire Patton Boggs had filed a $300 million lawsuit against the company. Getswift's minimal cash flows and ~$100 million in cash at bank pale in the face of this claim.
Alternatively, it's possible that large investors like Regal may be selling their stake. There is certainly a number of reasons to be concerned with Getswift, as we outlined on Monday. While the class actions will take a while to resolve, they could prove an expensive distraction for management. I continue to think investors are better off avoiding Getswift entirely.
