Groupon Inc : Law Offices of Howard G. Smith Announces Continued Investigation On Behalf of Investors of Groupon, Inc.
04/02/2012| 08:20pm US/Eastern
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Law Offices of Howard G. Smith announces that it is continuing to
investigate potential claims on behalf of purchasers of the securities
of Groupon, Inc. ("Groupon" or the "Company") (NASDAQ: GRPN) concerning
possible violations of federal securities laws. The investigation
focuses on allegations that certain statements issued by the Company
between November 3, 2011 and March 30, 2012, regarding Groupon's
business, operations and financial condition were false and misleading.
Groupon operates an e-commerce marketplace that connects merchants to
consumers by offering goods and services at a discount in North America
and internationally. Specifically, the investigation relates to the
Company's March 30, 2012 disclosure that the Company was revising its
reported year-end and fourth quarter financial results for 2011.
According to the Company, the revisions resulted in a reduction to
fourth quarter 2011 revenue of $14.3 million and an increase to fourth
quarter operating expenses that reduced operating income by $30.0
million, net income by $22.6 million, and earnings per share by $0.04.
The Company further disclosed that the revisions were primarily related
to an increase to the Company's refund reserve accrual to reflect a
shift in the Company's fourth quarter deal mix and higher price point
offers, which have higher refund rates, and that the Company had a
material weakness in its internal controls over its financial statement
close process.
If you purchased Groupon securities between November 3, 2011 and March
30, 2012, if you have information or would like to learn more about
these claims, or if you wish to discuss these matters or have any
questions concerning this announcement or your rights or interests with
respect to these matters, please contact Howard G. Smith, Esquire, of
Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem,
Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888)
638-4847, or by email to howardsmith@howardsmithlaw.com,
or visit our website at www.howardsmithlaw.com.
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
© Business Wire 2012
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