Groupon, Inc. Shareholder-Investor Investigation for Class Action Lawsuit
Lead Plaintiff Deadline Approaching

Groupon, Inc. Shareholder-Investor Investigation into potential breach of fiduciary duty by Groupon’s Board of Directors concerning false revenue reports, misleading statements, and failure to maintain internal controls. U.S. Securities and Exchange Commission investigation also pending.

Groupon Investigation Announced by Gilman Law LLP

Groupon Investigation Announced by Gilman Law LLP - Call (239) 221-8301 for a Free Consultation

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”) (Google: NASDAQ:GRPN; Yahoo: NASDAQ:GRPN) 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, you may contact our office for a free consultation by calling (239) 221-8301, sending an e-mail for more information to consultations@gilmanlawllp.com, or by completing this online form for a free securities law consultation.

Groupon Whistleblowers

Persons with knowledge that may help the investigation are encouraged to contact the firm. The U.S. Securities and Exchange Commission recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the U.S. Securities and Exchange Commission to reward whistleblowers who provide unique information leading to a successful enforcement with up to 30 percent of the recovery.

To learn more about how to be a whistleblower, whistleblower rewards, different types of whistleblower programs, and who can be a whistleblower, visit the Gilman Law LLP Whistleblower Website. The Whistleblower Division of Gilman Law LLP is offering free consultations to individuals in many different areas in addition to the Groupon Investigation. There is no charge to speak with a whistleblower attorney.

National Shareholder Rights and Securities Law Firm Gilman Law LLP

The leading national securities law attorneys at Gilman Law have over 32 years of experience litigating securities and other class action cases. Our firm has been involved in all major aspects of securities litigation, including cases involving stock manipulation, securities fraud, investment fraud, and shareholder rights violations, as well as securities class action suits on behalf of both individual and institutional investors.

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The Securities and Investment Fraud Attorneys at Gilman Law LLP have been recognized by numerous leading legal publications:

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