BOSTON, April 3, 2012 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible securities law violations involving Groupon, Inc. ("Groupon" or the "Company") (NASDAQ: GRPN).
On Friday, the Company announced that its executives failed to set aside enough money for customer refunds and that the Company therefore was revising its results for the fourth quarter and the year ended December 31, 2011. As a result of the announced revisions, the Company's fourth quarter 2011 revenue was reduced by $14.3 million and its operating income was reduced by $30.0 million. Earnings per share dropped by $0.04.
The concerns related to these accounting issues were heightened by the Company's issuance of a statement of "material weakness" regarding its internal financial controls. The Securities Exchange Commission has opened a preliminary probe into the Company based on these revelations. The Company's stock has plummeted on this news, falling from a close of $18.28 on Friday to $15.21 in late day trading, a decline of more than 17%.
Block & Leviton's investigation seeks to determine, among other things, whether Groupon or its officers and directors have violated the federal securities laws. If you have any information relevant to this investigation, or if you purchased Groupon stock between February 8, 2012 and March 30, 2012 and have questions about your legal rights, please contact Block & Leviton LLP.
Block & Leviton is a Boston-based law firm representing investors for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years.
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Contact: BLOCK & LEVITON LLP
Scott Mays, Esq.
Jeffrey C. Block, Esq.
SOURCE Block & Leviton LLP