SAN DIEGO & CHICAGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP reminds investors that a purchaser of Groupon, Inc. (NASDAQ: GRPN) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between November 4, 2019 and February 18, 2020. Groupon operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount.
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Groupon, Inc. (GRPN) Accused of Misleading Shareholders
According to the complaint, on November 4, 2019, Groupon announced its third quarter 2019 financial results stating, "We believe that the improvements we're making to the customer experience…will encourage our customers to return to Groupon again and again" and that the Company was looking forward to its sales in the holiday season. Groupon then announced an expected adjusted EBITDA of approximately $270 million for full year 2019. Despite its positive forward-looking statements, on February 18, 2020, Groupon reported a 23% decline in sales year-over-year, and an adjusted EBITDA for 2019 of $227.2 million, a significant miss from its previous $270 million forecast. When asked about the disappointing results, Groupon cited lower customer engagement in its Goods category, which lowered overall traffic and "ultimately impeded performance in all of our categories" with a notable adverse impact to its holiday peak period. On this news, Groupon's share price fell over 44% to close at $1.70 per share. A little over a month after the announcement, both its CEO and COO were removed from their positions.
Groupon, Inc. (GRPN) Shareholders Have Legal Options
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