Groupon Class Action Lawsuit
Last Updated on June 26, 2017
Attorneys working with ClassAction.org are no longer investigating this matter. The information here is for reference only. A list of open investigations and lawsuits can be viewed here.
At A Glance
- This Alert Affects
- Investors who purchased Groupon securities between Nov. 4, 2011 and March 30, 2012.
- Potentially, a Groupon class action on behalf of investors who were allegedly misled by the company could provide compensation for monetary losses, interest, and attorneys' fees.
- Groupon, Inc.
- Additional Details
- Groupon, Inc. runs the world's largest online coupon website.
- It is alleged that Groupon issued false or misleading statements between Nov. 4, 2011 and March 30, 2012.
Note: We are no longer accepting claims regarding the Groupon securities suit.
Investors who purchased Groupon securities between Nov. 4, 2011 and March 30, 2012 may have legal recourse to seek compensation for damages. It has been alleged that the company may have issued false or misleading information to investors regarding its business, operations and financial condition, including in connection with its November 2011 initial public offering (IPO). The company, which runs the world’s largest online coupon website, has already been hit with one proposed class action lawsuit alleging that it mislead investors about its financial prospects, and more suits are expected to follow.
Did you purchase securities in Groupon between Nov. 4, 2011 and March 30, 2012? If so, you may qualify to serve as a lead plaintiff in this action. The deadline to file lead plaintiff motions is June 4, 2012.
In late March, Groupon announced that its financial statements needed to be restated and that its fourth-quarter income and sales were lower than it had reported. Groupon stated that its fourth quarter 2011 revenue had been reduced by $14.3 million; operating income by $30 million; net income by $22.6 million; and earnings per share by $.04. The company announced that it had to issue the Groupon restatement revising its fourth-quarter results to increase the funds it set aside for refunds to customers. The company called the error a “material weakness” and said it failed to account for an increase in higher-priced deals when it began selling discounts on vacation packages, Botox procedures and other deals which have higher return rates.
Groupon Class Action Lawsuit
The proposed Groupon class action suit alleges that the company misled investors about its financial prospects and concealed weak internal controls. In light of allegations posed by the Groupon class action lawsuit, investors who purchased Groupon securities between Nov. 4, 2011 and March 30, 2012 may have legal recourse. Potentially, these individuals may be able to participate in class action lawsuit seeking compensation related to damages resulting from the company’s alleged misleading of shareholders.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Your share in any recovery will not be affected by serving as a lead plaintiff. Any member of the purported 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. If you purchased securities in Group between Nov. 4, 2011 and March 30, 2012 you may be eligible to participate in a class action lawsuit and recover lost funds. The deadline to file lead plaintiff motions is June 4, 2012.
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