BOSTON, April 3, 2012 (GLOBE NEWSWIRE) -- The National Shareholder Rights and Securities Law Firm of Gilman Law LLP is investigating potential breach of fiduciary duty claims by current shareholders of Groupon, Inc. ("Groupon") against the board of directors of Groupon in connection with alleged false revenue reports and misleading statements in violation of certain federal and/or state securities laws. In response to the alleged false revenue reports, misleading statements, and failure to maintain effective internal controls, the U.S. Securities and Exchange Commission launched a probe into Groupon, according to the April 2, 2012 report in the Wall Street Journal.
On March 30, 2012, Groupon announced that it needed to revise its reported financial results for the fourth quarter and fiscal year ended December 31, 2011. Specifically, the company announced that the revisions included a $14.3 million reduction in revenue, a $22.6 million reduction in net income, and a $0.04 reduction in earnings per share. This restatement comes only months after Groupon was required to correct an error in a September 2011 IPO filing that reduced reported 2010 revenue from $644.7 million to $312.9 million.
Further, Groupon announced that its independent auditor, Ernst & Young LLP, had determined that the company failed to maintain effective internal controls over financial reporting. In a press release issued on March 30, 2012, Groupon stated that in connection with Ernst & Young LLP's audit of Groupon's financial statements, "the Company included a statement of a material weakness in its internal controls" in its Form 10-K filed March 30, 2012.
Upon these revelations, the company's value fell from $18.38 per share on March 30, 2012, to close at $15.28 per share on April 2, 2012, a one day decline of nearly 17%.
If you are a current shareholder of Groupon and would like to learn more about the breach of fiduciary duty investigation by the National Shareholder Rights and Securities Law Firm of Gilman Law LLP, you may contact our office for a free consultation by calling (239) 221-8301 or by visiting our securities law website to read more about the Groupon Breach of Fiduciary Duty Investigation. Individuals with unique information are encouraged to visit our Whistleblower Website to learn more information about the whistleblower process and the whistleblower rewards available.
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