San Diego, CA -- (SBWIRE) -- 04/02/2012 -- Following the Restatement of its Financial Results an investigation for investors in NASDAQ:GRPN shares over potential securities laws violations by Groupon Inc and certain of its directors and in connection with certain financial statements was announced.
Investors who purchased shares of Groupon Inc (NASDAQ:GRPN), including those who purchased NASDAQ:GRPN shares in the initial public offering of Groupon, 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 possible claims on behalf of purchasers of the securities of Groupon Inc (NASDAQ:GRPN) concerning whether a series of statements by the Company between November 3, 2011 and March 30, 2012 regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
In February 2012, Groupon reported its first earnings report since going public in November 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.
In connection with an audit of Groupon's financial statements for the year ended December 31, 2011 by its auditor, Ernst & Young LLP, Groupon Inc also said that “in conjunction with the completion of the audit of Groupon's financial statements for the year ended December 31, 2011 by its independent auditor, Ernst & Young LLP, the Company included a statement of a material weakness in its internal controls over its financial statement close process in its Annual Report on Form 10-K for year ended December 31, 2011."
Shares of Groupon Inc (NASDAQ:GRPN), that traded on November 18, 2011 as high as $26.19 closed on March 30, 2012 at $18.38 per share.
Those who purchased shares of Groupon Inc (NASDAQ:GRPN) and currently hold those Groupon (GRPN) shares, may have certain options and should contact the Shareholders Foundation.
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