Hagens Berman Announces Lead Plaintiff Deadline in Groupon Class Actions
Chicago, Illinois -- Hagens Berman Sobol Shapiro, an investor-rights law firm, today announced that multiple class actions have been filed against Groupon (NASDAQ GS: GRPN) starting the time for investors with large losses to select and interview counsel and, if so desired, to move to be the lead plaintiff.
There is no need to join any Groupon securities fraud class action at this time. Hagens Berman expects that most, if not all of the actions, will be consolidated by the courts into one in front of the same judge in the United States District Court for the Northern District of Illinois.
Hagens Berman is willing to discuss these actions and representation with investors who would like to consider joining as a lead plaintiff. The lead plaintiff is the person or group of persons the court appoints to represent the interests of the class members.
Investors who purchased or otherwise acquired shares of Groupon common stock between November 4, 2011, and March 30, 2012 (the “class period”), and who have suffered substantial financial losses are encouraged to contact Hagens Berman Partner Reed Kathrein by calling (510) 725-3000. Investors may also contact the firm via email at GRPN@hbsslaw.com. The deadline to move the court for lead plaintiff is June 4, 2012.
The suits, filed in the United States District Court for the Northern District of Illinois on April 3, 2012, allege that Groupon and several of its underwriting banks issued false and misleading statements to investors at the time they went public in November.
Groupon initially priced its stock at $20.00 per share. The stock price rose as high as $26.19 during the class period.
Each of the suits is based upon the March 30, 2012, Groupon announcement that it would be revising its fourth quarter, 2011 financial results, to reflect a reduction in revenue and an increase in operating expenses. A press release issued by Groupon noted that “In conjunction with the completion of the audit of Groupon’s financial statements for the year ended December 31, 2011 by its independent auditor, Ernst & Young LLP, the Company included a statement of a material weakness in its internal controls over its financial statement close process in its Annual Report on Form 10-K for year ended December 31, 2011.”
Following Groupon’s announcement, the company’s stock declined in after-hours trading and on Monday, April 2, 2012, closed down nearly 17 percent at $15.27. It closed down an additional $.25 on April 3, 2012, at $15.02.
While the complaints filed today allege various misrepresentations and omissions, the core complaint relates to Groupon’s failure to disclose that its financial reports were materially misleading and that its internal controls were so poor and inadequate that Groupon’s reported results were not reliable.
Hagens Berman is continuing to investigate the state of Groupon’s financials at the time of the IPO, to what extent Groupon misled investors in violation of the securities laws and whether the stock traded at an artificially high price during the class period.
Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
About Hagens Berman
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. The firm represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm’s securities law blog is at www.meaningfuldisclosure.com.
Media Contact: Mark Firmani, Firmani + Associates, (206) 443-9357, Mark@firmani.com