GrubMarket, Inc. - Order Appointing Fund Administrator

SEC Administrative Proceedings

Filed March 26th, 2026

Detected March 28th, 2026

Summary

The SEC has appointed KCC Class Action Services, LLC as the fund administrator for the $8 million Fair Fund collected from GrubMarket, Inc. This follows an earlier order where GrubMarket was fined $8 million for materially overstating revenues to investors between 2019 and 2021.

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What changed

This administrative order formally appoints KCC Class Action Services, LLC as the fund administrator for the $8,000,000.00 Fair Fund established from a civil money penalty imposed on GrubMarket, Inc. The penalty was levied due to GrubMarket's negligence in providing materially overstated financial statements to investors during a Series D financing round between November 2019 and February 2021. The order also sets the administrator's bond amount at $8,000,000.00 and authorizes the payment of the administrator's fees and expenses from the Fair Fund.

Compliance officers should note that this action is part of the SEC's ongoing efforts to distribute collected penalties to harmed investors. While this specific order is procedural, it confirms the finality of the penalty and the establishment of the Fair Fund. Regulated entities should be aware of the SEC's enforcement actions related to financial misrepresentation and the mechanisms for investor restitution. No immediate action is required by regulated entities based solely on this order, but it underscores the importance of accurate financial reporting and investor disclosures.

What to do next

Review SEC order regarding appointment of fund administrator for GrubMarket, Inc.
Note the establishment of an $8 million Fair Fund for investor distribution.
Ensure internal controls prevent similar financial misrepresentation issues.

Penalties

$8,000,000.00 civil money penalty

Source document (simplified)

UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 105095 / March 26, 2026 ADMINISTRATIVE PROCEEDING File No. 3-22421 In the Matter of ORDER APPOINTING FUND ADMINISTRATOR, SETTING GrubMarket, Inc., ADMINISTRATOR’S BOND AMOUNT, AND AUTHORIZING THE APPROVAL Respondent. AND PAYMENT OF THE FEES AND EXPENSES OF ADMINISTRATION

On January 17, 2025, the Commission issued an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Making Findings, and Imposing a Cease-and-Desist Order (the “Order”) against GrubMarket, Inc. (the “Respondent”). 1 In the Order, the Commission found that between November 2019 and February 2021, GrubMarket raised approximately $80 million from investors in a Series D financing round after providing investors with financial statements and other financial information that materially overstated the company’s historical revenues. The Commission found that GrubMarket was negligent in not disclosing that the financial statements and other financial information it provided to investors, which purported to reflect the consolidated results of operations from dozens of independent wholesalers, were unreliable. The Commission ordered the Respondent to pay an $8,000,000.00 civil money penalty to the Commission. The Commission also created a

: : Securities Act Rel. No. 11354 (Jan. 17, 2025). 1: : : : :

Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty collected can be distributed to harmed investors (the “Fair Fund”). The Fair Fund consists of the $8,000,000.00 collected from the Respondent. The Fair Fund has been deposited in a Commission-designated account at the U.S. Department of the Treasury, and any accrued interest will be added to the Fair Fund. The Division of Enforcement (the “Division”) now seeks the appointment of KCC Class Action Services, LLC (“KCC”) as the fund administrator and requests that the administrator’s bond be set at $8,000,000.00. KCC is included in the Commission’s approved pool of administrators. The Division further requests that the Commission authorize the Office of Financial Management (“OFM”), at the direction of an Assistant Director of the Office of Distributions, to pay the Fund Administrator’s fees and expenses from the Fair Fund, so long as the total amount paid to the Fund Administrator, including the invoice to be paid, does not exceed the total amount of the approved cost proposal submitted by the Fund Administrator. Accordingly, IT IS HEREBY ORDERED that:

KCC is appointed as the Fund Administrator, pursuant to Rule 1105(a) of the

Commission’s Rules on Fair Fund and Disgorgement Plans (“Commission’s Rules”); 2

KCC shall obtain a bond in accordance with Rule 1105(c) of the Commission’s

Rules, in the amount of $8,000,000.00; 3

17 C.F.R. § 201.1105(a). 2 17 C.F.R. § 201.1105(c). 3

the Fund Administrator will submit invoices to the Commission staff for services
rendered, in accordance with Rule 1105(d) of the Commission’s Rules; and 4
at the direction of an Assistant Director of the Office of Distributions, OFM is
authorized to pay the Fund Administrator’s fees and expenses from the Fair Fund, in accordance with Rule 1105(e) of the Commission’s Rules, so long as the total 5 amount paid to the Fund Administrator, including the invoice to be paid, does not exceed the total amount of the approved cost proposal submitted by the Fund Administrator. For the Commission, by the Division of Enforcement, pursuant to delegated authority. 6 Vanessa A. Countryman Secretary

17 C.F.R. § 201.1105(d). 4 17 C.F.R. § 201.1105(e). 5 17 C.F.R. § 200.30-4(a)(17) and 17 C.F.R. § 200.30-4(a)(21)(vi). 6