San Diego, CA -- (SBWIRE) -- 05/16/2012 -- A deadline is coming up on June 4, 2012 in the lawsuit filed for investors in NASDAQ:GRPN shares against Groupon Inc over alleged securities laws violations following its restatement of certain Financial Results.
Investors with a substantial investment in NASDAQ:GRPN shares between November 4, 2011 and March 30, 2012, should get active before the Deadline that is coming up on June 4, 2012, and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint filed in the U.S. District Court for the Northern District of Illinois the plaintiff alleges on behalf of purchasers of Groupon Inc (NASDAQ:GRPN) between November 4, 2011 and March 30, 2012, and/or who acquired shares of Groupon common stock pursuant or traceable to its Registration Statement and Prospectus issued in connection with its November 4, 2011 initial public offering (“IPO”), that Groupon, Inc and certain of its officers and directors violated the Securities Act of 1933 and the Securities Exchange Act of 1934.
Specifically, the plaintiff alleges that as part of the Prospectus and Registration Statement issued in connection with the November 4, 2011 IPO and between November 4, 2011 and March 30, 2012, defendants represented that Groupon Inc had competitive advantages which would benefit its business and reported financial results which showed dramatic growth.
However, 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) fell from as high as $26.19 on November 18, 2011 to as low as $9.82 on May 4, 2012.
On May 10, 2012 NASDAQ:GRPN shares closed as low as $9.87 per share, significantly below its current 52week High.
Those who purchased shares of Groupon Inc (NASDAQ:GRPN) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego