Case Page

 

Case Status:    SETTLED
On or around 07/13/2016 (Date of order of final judgment)

Filing Date: April 03, 2012

According to the press release dated April 3, 2012, the complaint charges Groupon, certain of its officers and directors and the underwriters of its IPO with violations of the Securities Exchange Act of 1934 and the Securities Act of 1933. Groupon is a local e-commerce marketplace that connects merchants to consumers by offering
goods and services at a discount.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business practices and financial results. Specifically, defendants failed to disclose negative trends in Groupon’s business and made false statements regarding Groupon’s financial results. As a result of these false statements, defendants were able to successfully accomplish Groupon’s IPO at $20.00 per share, and subsequently Groupon’s stock traded at artificially inflated prices during the Class Period, reaching a high of $26.19 per share on November 18, 2011.

On November 3, 2011, Groupon announced the pricing of its IPO of 35 million shares of common stock at $20 per share for net proceeds of $658 million. As part of the Prospectus and Registration Statement issued in connection with the IPO and during the Class Period, defendants represented that the Company had competitive advantages which would benefit its business and reported financial results which showed dramatic growth.

Then, on March 30, 2012, after the market closed, Groupon issued a press release announcing a revision to its fourth quarter and full-year 2011 financial results, including a reduction in its fourth quarter 2011 revenue of $14.3 million. This resulted in an increase to Groupon’s fourth quarter 2011 operating expenses that reduced operating income by $30 million, net income by $22.6 million, and earnings per share by $0.04. Groupon attributed the revision to a shift in the Company’s fourth quarter deal mix and higher price point offers, which resulted in higher refund rates. On this news, Groupon’s stock dropped $3.10 per share to close at $15.28 per share on April 2, 2012, a decline of 17% on volume of 10 million shares.

According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) Groupon’s financial results were materially false and misleading in violation of Generally Accepted Accounting Principles (“GAAP”); (b) Groupon’s revenues were overstated in violation of GAAP; (c) Groupon’s business was not growing to the extent represented by defendants and was not nearly as resistant to competition as suggested by defendants; (d) the IPO Registration Statement and Prospectus concealed that Groupon was not in compliance with the laws and regulations of some of the countries in which it operated, including the United Kingdom; and (e) Groupon’s internal controls were so poor and inadequate that Groupon’s reported results were not reliable.

Plaintiff seeks to recover damages on behalf of all purchasers of Groupon common stock during the Class Period and/or who acquired shares of Groupon common stock pursuant or traceable to the Company’s IPO.

On August 28, 2012, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel.

On October 29, 2012, the Plaintiffs filed their amended consolidated complaint.

According to an Order issued by the Court on September 18, 2013, the Groupon Defendants' Motion to Dismiss Consolidated Amended Class Action Complaint was denied. Additionally, the Underwriter Defendants' Motion to Dismiss the Consolidated Amended Class Action Complaint was denied.

On March 23, 2016, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on April 8. On July 13, the Court granted final approval of the Settlement and issued Final Judgment in this case.

COMPANY INFORMATION:

Sector: Services
Industry: Retail (Catalog & Mail Order)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: GRPN
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. Illinois
DOCKET #: 12-CV-02450
JUDGE: Hon. Gary Feinerman
DATE FILED: 04/03/2012
CLASS PERIOD START: 11/04/2011
CLASS PERIOD END: 03/30/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Chapin Fitzgerald Sullivan & Bottini LLP
    550 West C Street, Suite 2000, Chapin Fitzgerald Sullivan & Bottini LLP, CA 92101
    619-241-4810 ·
  2. Robbins Geller Rudman & Dowd LLP
    200 S. Wacker Drive Suite 3100 , Robbins Geller Rudman & Dowd LLP , IL 60606
    312.674.4674. 312.674.4674. ·
No Document Title Filing Date
COURT: N.D. Illinois
DOCKET #: 12-CV-02450
JUDGE: Hon. Gary Feinerman
DATE FILED: 10/29/2012
CLASS PERIOD START: 02/08/2012
CLASS PERIOD END: 03/30/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bronstein, Gewirtz & Grossman, LLC (New York)
    60 East 42nd Street - Suite 4600, Bronstein, Gewirtz & Grossman, LLC (New York), NY 10165
    212.697.6484 212.697.7296 · info@bgandg.com
  2. Cafferty Clobes Meriwether & Sprengel LLP
    30 North LaSalle Street, Suite 3200, Cafferty Clobes Meriwether & Sprengel LLP, IL 60602
    734.769.2144 734.769.1207 ·
  3. Pomerantz Haudek Block Grossman & Gross LLP (Chicago)
    10 South LaSalle Street, Suite 3505, Pomerantz Haudek Block Grossman & Gross LLP (Chicago), IL 60603
    312.377.1181 312.377.1181 ·
No Document Title Filing Date
No Document Title Filing Date