NEW YORK, May 20, 2020 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Groupon, Inc. ("Groupon" or the "Company") of the June 29, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Groupon stock or options between November 4, 2019 and February 18, 2020and would like to discuss your legal rights, click here:www.faruqilaw.com/GRPN. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to[email protected].
CONTACT: FARUQI & FARUQI, LLP 685 Third Avenue, 26th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. [email protected] Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Northern District of Illinois on behalf of all those who purchased Groupon securities between November 4, 2019 and February 18, 2020 (the "Class Period"). The case, Macovski v. Groupon, Inc. et al, No. 20-cv-02581 was filed on April 28, 2020, and has been assigned to Judge Matthew F. Kennelly.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and/or misleading statements, as well as failing to disclose to investors that: (1) that the Company was experiencing fewer customer engagements in its Goods category; (2) that Groupon relied on its Goods category to drive its sales, especially during the holiday season; (3) that, as a result of the foregoing, the Company was likely to experience reduced sales; and (4) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
Specifically, on February 18, 2020, after the market closed, Groupon reported sales of $612.3 million, a 23% decline year-over-year. The Company's adjusted EBITDA for fiscal 2019 was reported at $227.2 million, a significant miss from its November 2019 forecast of $270 million.
In the same press release, Groupon announced a "transformational plan to exit Goods" in North America by the third quarter and globally by the end of the year.
On this news, Groupon's stock fell from a closing price of $3.05 per share on February 18, 2020 to $1.70 per share on February 19, 2020--a $1.35 or 44.26% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
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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