Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Yelp Inc.
August 06 2014 - 4:45PM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/yelp/) today announced that a class
action has been commenced in the United States District Court for
the Northern District of California on behalf of purchasers of Yelp
Inc. (“Yelp”) (NYSE:YELP) common stock during the period between
October 29, 2013 and April 3, 2014 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff’s counsel, Darren Robbins of
Robbins Geller at 800-449-4900 or 619-231-1058, or via e-mail at
djr@rgrdlaw.com. If you are a member of this class, you can view a
copy of the complaint as filed or join this class action online at
http://www.rgrdlaw.com/cases/yelp/. Any member of the putative
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.
The complaint charges Yelp and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
Yelp is an online networking platform that connects people with
local businesses. The Company generates revenue primarily from the
sale of advertising on its website and mobile app to local
businesses of all sizes that seek to reach its growing audience of
consumers.
The complaint alleges that during the Class Period, defendants
made materially false and misleading statements concerning the
Company’s true business and financial condition, including but not
limited to the true nature of the so-called “firsthand” experiences
and reviews appearing on the Company’s website, the robustness of
its processes and algorithms purportedly designed to screen
unreliable reviews, and the Company’s forecasted financial growth
prospects and the extent to which they were reliant upon
undisclosed business practices, including but not limited to
requiring business customers to pay to suppress negative reviews.
Defendants’ false and misleading statements during the Class Period
caused the Company’s stock to trade at artificially inflated
prices, reaching a high of over $98.00 per share on March 4, 2014,
and allowed Company insiders to sell more than 1.16 million shares
of Yelp stock at prices as high as $98.99 per share for insider
trading proceeds of more than $81.5 million.
According to the complaint, as the true facts concerning the
Company’s business practices began to be revealed to the market
through a series of articles and disclosures starting on March 31,
2014, the Company’s stock price declined, falling from a close of
$80.18 per share on April 1, 2014 to a close of $65.76 per share on
April 4, 2014.
Plaintiff seeks to recover damages on behalf of all purchasers
of Yelp common stock during the Class Period (the “Class”). The
plaintiff is represented by Robbins Geller, which has expertise in
prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Robbins Geller, with more than 200 lawyers in ten offices,
represents U.S. and international institutional investors in
contingency-based securities and corporate litigation. The firm has
obtained many of the largest securities class action recoveries in
history, including the largest jury verdict ever in a securities
class action. Please visit http://www.rgrdlaw.com for more
information.
Robbins Geller Rudman & Dowd LLP
Darren Robbins, 800-449-4900 or 619-231-1058
djr@rgrdlaw.com
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