Case Page

 

Case Status:    DISMISSED    
On or around 07/19/2013 (Other)

Filing Date: December 21, 2012

According to a law firm press release, the complaint charges Groupon and certain of its officers and directors with violations of the Securities Exchange Act of 1934. 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 and prospects. As a result of defendants’ false statements, Groupon stock traded at artificially inflated prices during the Class Period, reaching a high of $13.05 per share on May 16, 2012.

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 analysts’ expectations. In a conference call following the release of Groupon’s third quarter results, defendants 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.

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) much of Groupon’s revenue growth was being derived from its non-core, lower-margin Groupon Goods business; (b) Groupon’s business was not growing to the extent represented by defendants; and (c) Groupon’s revenue mix was shifting in a manner which would lead to lower margins.

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-10235
JUDGE: Hon. Harry D. Leinenweber
DATE FILED: 12/21/2012
CLASS PERIOD START: 05/14/2012
CLASS PERIOD END: 11/08/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bottini & Bottini, Inc.
    7817 Ivanhoe Avenue, Suite 102, Bottini & Bottini, Inc., CA 92037
    858.914.2001 858.914.2002 ·
  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. ·
  3. Robbins Geller Rudman & Dowd LLP (San Diego)
    655 West Broadway, Suite 1900, Robbins Geller Rudman & Dowd LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
No Document Title Filing Date