Shareholder Alert: Robbins LLP Announces Groupon, Inc. (GRPN) Sued for Misleading Shareholders
May 01 2020 - 4:29PM
Business Wire
Shareholder rights law firm Robbins LLP announces that a
purchaser of Groupon, Inc. (NASDAQ: GRPN) filed a class action
complaint against the Company for alleged violations of the
Securities Exchange Act of 1934 between November 4, 2019 and
February 18, 2020. Groupon operates online local commerce
marketplaces that connect merchants to consumers by offering goods
and services at a discount.
If you suffered a loss as a result of Groupon's misconduct,
click here.
Groupon, Inc. (GRPN) Accused of Misleading
Shareholders
According to the complaint, on November 4, 2019, Groupon
announced its third quarter 2019 financial results stating, "We
believe that the improvements we're making to the customer
experience…will encourage our customers to return to Groupon again
and again" and that the Company was looking forward to its sales in
the holiday season. Groupon then announced an expected adjusted
EBITDA of approximately $270 million for full year 2019. Despite
its positive forward-looking statements, on February 18, 2020,
Groupon reported a 23% decline in sales year-over-year, and an
adjusted EBITDA for 2019 of $227.2 million, a significant miss from
its previous $270 million forecast. When asked about the
disappointing results, Groupon cited lower customer engagement in
its Goods category, which lowered overall traffic and "ultimately
impeded performance in all of our categories" with a notable
adverse impact to its holiday peak period. On this news, Groupon's
share price fell over 44% to close at $1.70 per share. A little
over a month after the announcement, both its CEO and COO were
removed from their positions.
Groupon, Inc. (GRPN) Shareholders Have Legal Options
Contact us to learn more: Leo Kandinov (800) 350-6003
lkandinov@robbinsllp.com Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: https://www.businesswire.com/news/home/20200501005490/en/
Leo Kandinov Robbins LLP 5040 Shoreham Place San Diego, CA 92122
lkandinov@robbinsllp.com (619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com
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