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Press release from PR Newswire

Hagens Berman Continues Groupon Investigation Following Nearly 17 Percent Stock Price Decline

Monday, April 02, 2012

Hagens Berman Continues Groupon Investigation Following Nearly 17 Percent Stock Price Decline19:25 EDT Monday, April 02, 2012BERKELEY, Calif., April 2, 2012 /PRNewswire/ -- Hagens Berman Sobol Shapiro, an investor-rights law firm, today announced that it is continuing to investigate Groupon (NASDAQ GS: GRPN) following a nearly 17 percent drop in the company's stock price.Groupon disclosed in its 10-K filed on March 30, 2012:We are not ? currently required to make an assessment of the effectiveness of our internal controls. However, we will need to evaluate our internal controls over financial reporting in connection with Section 404 of the Sarbanes Oxley Act for the year ending December 31, 2012. This assessment will need to include disclosure of any material weaknesses in our internal control over financial reporting identified by our management ? We are in the early phases of compiling the system and processing documentation needed to comply with such requirements. We may not be able to complete our evaluation, testing and any required remediation in a timely fashion."In the rush to getting the IPO off before year end, it appears that everyone involved ignored material weaknesses in Groupon's internal controls and made no assessment," said Reed Kathrein who is leading Hagens Berman's investigation. "Such failures, if known, would have caused the stock price to begin trading at much lower prices."Investors who purchased or otherwise acquired shares of Groupon common stock through March 30, 2012 and who have suffered substantial financial losses are encouraged to contact Hagens Berman Partner Reed Kathrein by calling (510) 725-3000. Investors may also contact the firm via email at GRPN@hbsslaw.com or by visiting www.hbsslaw.com/GRPN. Groupon went public in November 2011. Hagens Berman is investigating whether internal control deficiencies existed at the time of the company's public offering and whether it violated securities laws by failing to disclose issues to investors. On March 30, 2012, Groupon announced that it was revising its fourth quarter financial results for the year ending on December 31, 2011. A press release issued by Groupon noted that "In conjunction with the completion of the audit of Groupon's financial statements for the year ended December 31, 2011 by its independent auditor, Ernst & Young LLP, the Company included a statement of a material weakness in its internal controls over its financial statement close process in its Annual Report on Form 10-K for year ended December 31, 2011."The company has admitted that in connection with its year end close, just weeks after its Initial Public Offering it:failed to maintain a financial closing process and procedures that were adequately designed, documented and executed to support the accurate and timely reporting of financial results; failed to maintain effective controls to provide reasonable assurance that accounts were complete and accurate and agreed to detailed support, and that account reconciliations were properly performed, reviewed and approved; failed to have adequate policies and procedures in place to ensure the timely, effective review of estimates, assumptions and related reconciliations and analyses, including those related to customer refund reserves. Following Groupon's announcement on March 30, 2012, the company's stock declined in after-hours trading and on Monday, April 2, 2012, closed down nearly 17 percent at $15.27.WhistleblowersPersons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery. About Hagens BermanHagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities.  The firm represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm's securities law blog is at www.meaningfuldisclosure.com.Media Contact: Mark Firmani, Firmani + Associates, (206) 443 9357, Mark@firmani.comSOURCE Hagens Berman Sobol Shapiro, LLP