NEW YORK, March 30, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Groupon, Inc. ("Groupon" or the "Company") (NASDAQ: GRPN).
On March 30, 2012 Groupon filed its Annual Report on Form 10-K and announced a revision of the Company's reported financial results for the fourth quarter and year ended December 31, 2011. The financial revisions result in a reduction to fourth quarter 2011 revenue of $14.3 million. Also affected is an increase in fourth quarter operating expenses that reduced operating income by $30.0 million, net income by $22.6 million, and earnings per share by $0.04. The Company announced that the revisions "are primarily related to an increase to the Company's refund reserve accrual to reflect a shift in the Company's fourth quarter deal mix and higher price point offers, which have higher refund rates." Moreover, Groupon stated that "the revisions have an impact on both revenue and cost of revenue."
Furthermore, the Company's auditor, Ernst & Young, has included a statement of material weakness in Groupon's internal controls in the Company's annual 10-K filing with the Securities and Exchange Commission.
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If you purchased Groupon securities and would like to discuss your legal rights, visit www.faruqilaw.com/GRPN. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected] or [email protected]. Faruqi & Faruqi, LLP also encourages anyone with information regarding Groupon's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
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New York, NY 10017
Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
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