|By PR Newswire||
|December 28, 2012 07:30 PM EST||
SAN DIEGO and CHICAGO, Dec. 28, 2012 /PRNewswire/ -- Shareholder rights firm Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors of Groupon, Inc. (NASDAQ: GRPN).
Robbins Umeda LLP is investigating whether officers and directors of Groupon breached their fiduciary duties to shareholders by concealing the fact that the company's business was not growing to the extent represented publically. As a result, Groupon's stock traded at artificially inflated prices, reaching a high of $13.05 per share on May 16, 2012.
On November 8, 2012, Groupon announced its third quarter 2012 financial results and fourth quarter revenue forecast. Specifically, Groupon announced a net loss of $3 million, on revenue of $568.6 million for the third quarter, and forecast revenue in the range of $625 million to $675 million for the fourth quarter. These figures were substantially below analysts' expectations of revenues of $590.12 million for the third quarter and $633.87 million for the fourth quarter. Further, Groupon announced that its lower margin business - Groupon Goods - has evolved to become a more significant part of its revenue. Following the announcement, Groupon stock declined nearly 30%, or $1.16 per share, to close at $2.76 on November 9, 2012.
Robbins Umeda LLP highlights that Groupon shareholders have the option to pursue a shareholder derivative action, through which shareholders aim to hold insider wrongdoers accountable for their actions, prevent future misconduct, and bring long-term value back to the company. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.
Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/groupon-inc/
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SOURCE Robbins Umeda LLP