Press release from Business Wire
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Groupon, Inc.
Friday, December 21, 2012
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Groupon, Inc.14:45 EST Friday, December 21, 2012 SAN DIEGO (Business Wire) -- Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/grpn/) today announced that a class action has been commenced in the United States District Court for the Northern District of Illinois on behalf of purchasers of Groupon, Inc. (“Groupon”) (NASDAQ:GRPN) common stock during the period between May 14, 2012 and November 8, 2012 (the “Class Period”). If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/grpn/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The complaint charges Groupon and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Groupon is a local e-commerce marketplace that connects merchants to consumers by offering goods and services at a discount. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and prospects. As a result of defendants' false statements, Groupon stock traded at artificially inflated prices during the Class Period, reaching a high of $13.05 per share on May 16, 2012. On November 8, 2012, Groupon issued a press release announcing its third quarter 2012 earnings results, reporting disappointing revenue results for the third quarter and lowered revenue guidance for the fourth quarter of 2012 below analysts' expectations. In a conference call following the release of Groupon's third quarter results, defendants acknowledged that the Company's lower margin Groupon Goods business would be a more significant part of its revenues. As a result of this news, Groupon stock dropped $1.16 per share to close at $2.76 per share on November 9, 2012, a one-day decline of nearly 30% and a decline of 78% from the stock's Class Period high. According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) much of Groupon's revenue growth was being derived from its non-core, lower-margin Groupon Goods business; (b) Groupon's business was not growing to the extent represented by defendants; and (c) Groupon's revenue mix was shifting in a manner which would lead to lower margins. Plaintiff seeks to recover damages on behalf of all purchasers of Groupon common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries in history and has been ranked number one in the number of shareholder class action recoveries in MSCI's Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm's recoveries have averaged 35% above the median for all firms over the past seven years (2005-2011). Please visit http://www.rgrdlaw.com for more information. Robbins GellerDarren Robbins800/449-4900 or firstname.lastname@example.org