SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of those who purchased or otherwise acquired the common stock of Yelp, Inc. (“Yelp” or the “Company”) (NYSE: YELP) between October 29, 2013 and April 3, 2014, inclusive (the “Class Period”).
If you purchased or otherwise acquired Yelp common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than October 6, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Yelp investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Yelp Securities Class Litigation
The action charges Yelp and certain of its senior officers with violations of the Securities Exchange Act of 1934. Yelp describes itself generally as an online networking platform that connects people with great local businesses.
The complaint alleges that, during the Class Period, defendants made materially false and misleading statements concerning the Company’s true business and financial condition, including the true nature of the “firsthand” experiences and reviews appearing on the Company’s website, the robustness of its processes and algorithms purportedly designed to screen unreliable reviews, and the Company’s forecasted financial growth prospects as well as the extent to which they were reliant upon undisclosed business practices, including that of requiring business customers to pay to suppress negative reviews.
Allegedly as a result of defendants’ false and misleading statements, Yelp’s stock traded at artificially inflated prices during the Class Period, reaching a high closing price of $98.04 per share on March 4, 2014, as Company insiders sold 1.16 million shares of their Yelp stock during the Class Period, for proceeds of over $81.5 million.
On March 31, 2014, the Los Angeles Times published an article entitled “Yelp’s practices sound to some like extortion.” The article reviewed the Company’s practice of offering business customers a paid service to suppress negative reviews. On April 2, 2014, the Wall Street Journal reported that the Federal Trade Commission had received at least 2,046 complaints about Yelp since 2008. As the market absorbed this news, Yelp’s stock price dropped $14.42 per share, or nearly 18%, over three trading days, from a close of $80.18 on April 1, 2014, to close at $65.76 per share on April 4, 2014.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for eleven years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs' bar and that demonstrated unusual dedication and creativity.” Best Lawyers and U.S. News have also named Lieff Cabraser as a “Law Firm of the Year” each year the publications have given this award to law firms.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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