Press release from Business Wire
Law Offices of Howard G. Smith Announces Continued Investigation On Behalf of Investors of Groupon, Inc.
Monday, April 02, 2012
Law Offices of Howard G. Smith Announces Continued Investigation On Behalf of Investors of Groupon, Inc.20:15 EDT Monday, April 02, 2012 BENSALEM, Pa. (Business Wire) -- Law Offices of Howard G. Smith announces that it is continuing to investigate potential claims on behalf of purchasers of the securities of Groupon, Inc. (“Groupon” or the “Company”) (NASDAQ: GRPN) concerning possible violations of federal securities laws. The investigation focuses on allegations that certain statements issued by the Company between November 3, 2011 and March 30, 2012, regarding Groupon's business, operations and financial condition were false and misleading. Groupon operates an e-commerce marketplace that connects merchants to consumers by offering goods and services at a discount in North America and internationally. Specifically, the investigation relates to the Company's March 30, 2012 disclosure that the Company was revising its reported year-end and fourth quarter financial results for 2011. According to the Company, the revisions resulted in a reduction to fourth quarter 2011 revenue of $14.3 million and an increase to fourth quarter operating expenses that reduced operating income by $30.0 million, net income by $22.6 million, and earnings per share by $0.04. The Company further disclosed that the revisions were primarily related to an increase to the Company's refund reserve accrual to reflect a shift in the Company's fourth quarter deal mix and higher price point offers, which have higher refund rates, and that the Company had a material weakness in its internal controls over its financial statement close process. If you purchased Groupon securities between November 3, 2011 and March 30, 2012, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com. Law Offices of Howard G. SmithHoward G. Smith, Esquire215email@example.com