NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of Illinois on behalf of those who acquired Groupon, Inc. (“Groupon” or the “Company”) (NASDAQ: GRPN) securities during the period from November 4, 2019 through February 18, 2020. Investors have until June 29, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Groupon failed to disclose that: (i) the Company was experiencing fewer customer engagements in its Goods category; (ii) Groupon relied on its Goods category to drive its sales, especially during the holiday season; and (iii) as a result of the foregoing, the Company was likely to experience reduced sales.
On February 18, 2020, after the market closed, Groupon reported sales of $612.3 million, a 23% decline year-over-year. In the same press release, Groupon announced a “transformational plan to exit Goods” in North America by the third quarter and globally by the end of the year.
On February 19, 2020, before the market opened, Groupon held a conference call during which CEO Rich Williams stated that “Midway through the fourth quarter, it became clear, however, that we were seeing far fewer customers engaged with Goods, and it impacted overall traffic to our site. The lower traffic ultimately impeded performance in all of our categories.”
On this news, Groupon shares fell $1.35 per share, or 44.3%, to close at $1.70 on February 19, 2020.
If you acquired Groupon securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: www.kmllp.com.
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