NEW YORK, Jan. 11, 2013 /PRNewswire/ --Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Groupon, Inc. ("Groupon" or the "Company") (NASDAQ: GRPN).
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The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) a substantial portion of Groupon's revenue growth was being derived from its non-core, lower-margin Groupon Goods business; (2) Groupon's business was not growing to the extent represented by the Company; and (3) Groupon's revenue stream was shifting in a manner which would lead to lower margins.
On November 8, 2012, Groupon issued a press release announcing its third quarter 2012 earnings results, reporting disappointing revenue results for the third quarter and lowered revenue guidance for the fourth quarter of 2012 below market expectations. In a conference call following the release of Groupon's third quarter results, Groupon acknowledged that the Company's lower margin Groupon Goods business would be a more significant part of its revenues. As a result of this news, Groupon stock dropped $1.16 per share to close at $2.76 per share on November 9, 2012, a one-day decline of nearly 30% and a decline of 78% from the stock's Class Period high.
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Take Action
If you purchased Groupon stock or options between May 14, 2012 and November 8, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/GRPN. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.comor fmcconville@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Groupon's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Francis McConville, Esq.
fmcconville@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
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