Press release from Business Wire
Girard Gibbs LLP Launches Groupon Legal Investigation
Tuesday, April 03, 2012
SAN FRANCISCO (Business Wire) -- The law firm of Girard Gibbs LLP today announced that it is investigating Groupon, Inc. (NASDAQ:GRPN) for possible violations of federal securities laws. The Groupon lawsuit investigation focuses on the company's recent announcement that it would restate its financial results for the fourth quarter of 2011 and that there were material weaknesses in its internal controls.
Groupon made an initial public offering in November 2011. In its first annual report filed with the Securities and Exchange Commission on March 30, 2012, Groupon announced that it was revising its fourth quarter financial results for the year ending on December 31, 2011, resulting in a $14.3 million reduction to its fourth quarter revenues. The company primarily attributed the reduced revenue to an increase to its refund reserve accrual, which is money used to provide customer refunds under the company's refund policy.
Groupon also disclosed that its auditors found a material weakness in its internal controls and that it could not assure the accuracy of its financial statements or effectively review its estimates for various assumptions, including reserves for customer refunds.
On April 2, 2012, the first trading day following Groupon's announcement, the company's stock price dropped by nearly 17% to $15.27, well below its $20 IPO price.
“The fact that Groupon had to revise its numbers so soon after its initial public offering raises significant questions about its financial reporting,” said attorney Jonathan Levine of Girard Gibbs. “It is crucial that investors in public companies are provided with the most accurate information available when they are making the decision to invest.”
Girard Gibbs is investigating whether Groupon or its officers and directors have violated the federal securities laws by failing to disclose material information to investors. If you invested in Groupon common stock and would like to learn more about this investigation, or have questions concerning your legal rights, contact Girard Gibbs at (866) 981-4800 or visit our website: Girard Gibbs Groupon Securities Investigation.
Girard Gibbs LLP is one of the nation's leading firms representing investors, employees, consumers and small businesses in cases involving consumer protection, personal injury, securities, antitrust, and employment laws. The firm's senior partners, Daniel Girard and Eric Gibbs, have been selected for inclusion in The Best Lawyers in America® 2012 and Northern California Super Lawyers, and have earned AV-Preeminent ratings from Martindale-Hubbell, recognizing them in the highest class of attorneys for professional ethics and legal skills.
Girard Gibbs LLP
JONATHAN LEVINE, 415-981-4800