WEST HARTFORD, CT -- (Marketwire) -- 04/04/12 -- The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of Illinois on behalf of those who purchased the common stock of Groupon, Inc. ("Groupon" or the "Company") (NASDAQ: GRPN) traceable to the Company's Registration Statement and Prospectus issued in connection with its November 4, 2011 initial public offering (the "IPO"), and/or purchased or otherwise acquired Groupon common stock during the period from February 8, 2012 through March 30, 2012.
The Complaint alleges that Groupon and certain of its officers and directors violated the federal securities laws. Specifically, Groupon made false statements and failed to disclose material adverse facts about the adequacy of the Company's internal financial controls and its reported financial results for the fourth quarter of 2011.
On Friday, March 30, 2012, Groupon disclosed that: (i) it had materially understated refund reserves for fourth quarter 2011 ("Q4 2011") due to a failure to properly account for coupon refunds; (ii) as a result, it had materially misstated previously reported Q4 2011 and Full-Year 2011 revenue, operating income (loss), operating expense, net income (loss), earnings (loss) per share, and cost of revenue; and (iii) internal controls over its financial statements had material weaknesses. On April 2, 2012, the next trading day, Groupon stock closed at $15.27 -- a single-trading-day decline of $3.11 or 16.9%.
If you are a member of the class, you may, no later than June 4, 2012, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/groupon/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firstname.lastname@example.org. For more information about class action cases in general, please visit our website: www.izardnobel.com.
Nancy A. Kulesa