NEW YORK--(BUSINESS WIRE)--Newman Ferrara LLP announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Yelp Inc. (“Yelp” or the “Company”) (NYSE:YELP) common stock during the period between October 29, 2013 and April 3, 2014 (the “Class Period”). The complaint charges Yelp and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
Investors who purchased Yelp common stock during the Class Period may apply with the Court to be appointed lead plaintiff no later than October 6, 2014. The lead plaintiff will direct the litigation on behalf of the other class members.
Yelp, based in San Francisco, California, operates as an online local guide that connects consumers with businesses, including retail stores, service providers, and restaurants and allows consumers to review and rate such businesses. The Company’s marketing services allow businesses to view trends, message customers, update information, and offer deals and gift certificates.
The complaint alleges that during the Class Period, defendants issued a series of materially false and misleading statements concerning Yelp’s true business and financial condition, including but not limited to the veracity and accuracy of so-called “firsthand” experiences and reviews of businesses, the ability of the Company to screen unreliable reviews, and the Company’s forecasted financial growth prospects, including material omissions concerning the Company’s reliance on undisclosed, anti-consumer practices, such as allowing business customers to pay to suppress negative reviews. When the truth emerged about Yelp’s business practices, the Company’s stock price plummeted – falling from a close of $80.18 per share on April 1, 2014, to a close of $65.76 per share on April 4, 2014.
Investors who purchased Yelp stock during the Class Period may contact Newman Ferrara partner Jeffrey M. Norton (firstname.lastname@example.org) by email or call (212) 619-5400 to discuss this lawsuit or the lead plaintiff process.
Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.