Press release from Business Wire
Robbins Umeda LLP Announces an Investigation of Groupon, Inc.
Tuesday, April 03, 2012
Robbins Umeda LLP Announces an Investigation of Groupon, Inc.08:00 EDT Tuesday, April 03, 2012 SAN DIEGO (Business Wire) -- Shareholder rights firm Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Groupon, Inc. (NASDAQ: GRPN). Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website. Robbins Umeda LLP is investigating whether officers and directors of Groupon breached their fiduciary duties to shareholders by causing the company to incorrectly report revenue, overstate income, and issue materially false and misleading statements concerning Groupon's business and operations. The firm is also investigating whether officers and directors of Groupon breached their fiduciary duties by failing to maintain effective internal controls over the company's financial reporting. These issues have led the U.S. Securities and Exchange Commission to launch a probe into Groupon, according to an April 2, 2012 report in the Wall Street Journal. On March 30, 2012, Groupon announced that it needed to revise its reported financial results for the fourth quarter and fiscal year ended December 31, 2011. Specifically, the company announced that the revisions included a $14.3 million reduction in revenue, a $22.6 million reduction in net income, and a $0.04 reduction in earnings per share. This restatement comes only months after Groupon was required to correct an error in a September 2011 IPO filing that reduced reported 2010 revenue from $644.7 million to $312.9 million. In addition, Groupon announced that its independent auditor, Ernst & Young LLP, had determined that the company failed to maintain effective internal controls over financial reporting. In a press release issued on March 30, 2012, Groupon stated that in connection with Ernst & Young LLP's audit of Groupon's financial statements, "the Company included a statement of a material weakness in its internal controls" in its Form 10-K filed March 30, 2012. Upon these revelations, the company's value fell from $18.38 per share on March 30, 2012, to close at $15.28 per share on April 2, 2012, a one day decline of nearly 17%. Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com. Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/groupon-inc/ Attorney Advertising. Past results do not guarantee a similar outcome. Robbins Umeda LLPGregory E. Del Gaizo619-525-3990 or Toll Free 800-350-6003Info@robbinsumeda.comwww.robbinsumeda.com