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Press release from Business Wire

Newman Ferrara LLP Investigates Groupon, Inc. for Possible Breaches of Fiduciary Duty

Tuesday, April 03, 2012

Newman Ferrara LLP Investigates Groupon, Inc. for Possible Breaches of Fiduciary Duty16:50 EDT Tuesday, April 03, 2012 NEW YORK (Business Wire) -- Newman Ferrara LLP ( has begun an investigation into whether certain executive officers of Groupon, Inc. (“Groupon” or the “Company”) (NASDAQ: GRPN) breached their fiduciary duties to shareholders and engaged in other misconduct in relation to the issuance of false and misleading statements in the wake of prominent accounting mistakes in the Company's financial statements. Concerned investors are encouraged to contact Newman Ferrara partner Jeffrey M. Norton at (212) 619-5400 or to discuss this investigation, their rights, or potential remedies. On March 30, 2012, Groupon announced that its financial statements had to be reissued, and the Company admitted that the statements misstated certain facts, including that its fourth-quarter income was much lower than initially released. Ernst & Young, Groupon's third-party auditor, called the accounting error a “material weakness in its [Groupon's] internal controls.” These recent accounting errors are similar to the material false statements made by Groupon before it became a publicly traded company that lowered Groupon's sales by 50% just prior to becoming publicly traded. Newman Ferrara LLP's investigation consists of whether Groupon's executive officers purposely issued false accounting statements, failed to implement internal financial controls, and improperly monitored the Company's own accounting practices. Whistleblowers: Persons with knowledge that may aid in the investigation of this matter are encouraged to contact the firm. Under the Dodd-Frank Wall Street Reform Bill, whistleblowers are protected from employer retaliation and may be entitled to as much as 30 percent of the recovery if the information provided leads to a successful action. Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation with an emphasis on securities, ERISA, consumer fraud, products liability, civil rights and real estate. For more information, please visit the firm website at Newman Ferrara LLPAttorneys:Jeffrey M. Norton, 212-619-5400jnorton@nfllp.com