An investigation for investors who purchased in the November 2011 IPO of Groupon over potential breaches of fiduciary duties was announced and those NASDAQ:GRPN stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 04/18/2012 -- An investigation for NYSE:GRPN investors, who purchased their NADSAQ:GRPN shares in or close to the November 4, 2011 initial public offering (“IPO”) of Groupon Inc, over potential breaches of fiduciary duties by certain directors and officers of Groupon, Inc was announced.
Investors who purchased shares of Groupon Inc (NASDAQ:GRPN) on November 4, 2011 or shortly after Nov. 4 and currently hold any of these NASDAQ:GRPN shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm focuses on shareholder claims based on potential breaches of certain officers and directors of Groupon Inc in connection with certain financial statements.
Groupon issued a Registration Statement and Prospectus in connection with its November 4, 2011 initial public offering (“IPO”). On November 3, 2011, Groupon announced the pricing of its IPO of 35 million shares of common stock at $20 per share.
The investigation focuses on whether certain officers and directors caused the company to issue statements that were materially false and misleading at the time they were made.
In February 2012, Groupon reported its earnings report for the fourth quarter ended December 31, 2011. Groupon Inc reported that revenue increased 194% to $506.5 million in the fourth quarter compared to the fourth quarter of 2010, but also reported a net loss of $42.7 million, or 8 cents per share.
Then on March 30, 2012, Groupon announced that it was revising its fourth quarter financial results for the year ending on December 31, 2011. Groupon Inc said that "the revisions have an impact on both revenue and cost of revenue." As a result of the announced revisions, the Company's fourth quarter 2011 revenue was reduced by $14.3 million. In addition, Groupon's fourth quarter operating income was reduced by $30.0 million, its net income by $22.6 million, and its earnings per share by $0.04.
On April 3, 2012, a media report said that according to a person familiar with the situation the Securities and Exchange Commission is examining Groupon’s revision of its first set of financial results as a publicly traded company.
Shares of Groupon Inc (NASDAQ:GRPN) closed on April 17, 2012 at $12.58 per share, down from its 52weeks High of $31.14 per share.
Those who purchased shares of Groupon Inc (NASDAQ:GRPN) on November 4, 2011 or shortly after Nov. 4 and currently hold any of these NASDAQ:GRPN shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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