SAN FRANCISCO, April 29, 2020 /PRNewswire/ -- Hagens Berman urges investors in Groupon, Inc. (NASDAQ: GRPN) who have suffered significant losses to submit their losses now. A securities class action has been filed and certain investors may have valuable claims.
Groupon, Inc. (GRPN) Securities Class Action:
The litigation concerns the veracity of Groupon's and senior executives' statements about the company's Goods business.
More specifically, according to the complaint, on Nov. 4, 2019 CEO Rich Williams assured investors in connection with announcing Groupon's Q3 2019 financial results that despite challenges from traffic and international macroeconomic conditions the company and its senior executives believed they had "the right strategy in place to deliver on the promise of our marketplace." In addition, Defendants reaffirmed their FY 2019 outlook for adjusted EBITDA of approximately $270 million.
Investors began to learn the truth, according to the complaint, on Feb. 18, 2020, after the market closed, when Groupon reported adjusted EBITDA for FY 2019 of $227.2 million, or almost 16% lower than previously reaffirmed. CEO Williams blamed the shortfall on problems within the company's Goods business and admitted "[m]idway through the fourth quarter, it became clear, however, that we were seeing far fewer customers engaged with Goods, and it impacted overall traffic to our site."
In response to this news, the price of Groupon shares crashed about 44% lower on Feb. 19, 2020.
Soon after, on Mar. 25, 2020, the company abruptly announced CEO Williams and COO Steve Krenzer are "no longer serving" in those executive positions.
"We're focused on investors' losses and proving Groupon and its senior management intentionally misled investors by concealing problems with the company's Goods business," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Groupon and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Groupon should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
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Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP