If you have purchased shares of Groupon Inc (NASDAQ:GRPN) between May 14, 2012 and November 8, 2012, call 1-800-934-2921 right now to protect your rights.

Filing deadline:   02/19/2013

The new class-action lawsuit was filed on December 21st, 2012 in the United States District Court for the Northern District of Illinois. The plaintiffs are shareholders who purchased a considerable number of shares of Groupon, a publicly-traded company listed on the NASDAQ under the stock symbol GRPN. The Chicago-based company is no stranger to lawsuits, but this particular class-action complaint is centered on alleged violations of the Securities and Exchange Commission (SEC) Act of 1934.

The Groupon e-commerce business model consists of presenting consumers with daily deals that consist of online discount coupons they can redeem at a local retail business for goods or services. The company started with the Chicago local market in late 2008 and continued adding markets in the United States and abroad at a rapid pace. Groupon held its initial public offering (IPO) on June of 2011 and began trading under the ticker symbol GRPN. 

The Complaint

The plaintiffs claim that Groupon's high share price of $13.05 on May 16th, 2012 was inflated through a ruse caused by false statements issued by some of the company's officers and directors. The complaint specifically alleges that the company failed to disclose that revenue growth during the period stated in the class-action lawsuit came from Groupon Goods, a lower-margin division of the company's entire business. The plaintiffs also aver that reports about the company's growth were exaggerated. 

The third quarter financial reports filed by Groupon told a different story about the company's true performance. A deep disappointment loomed over the markets, leading to a vertiginous drop of 30 percent in just one day. On November 9th, 2012, shares of Groupon had slumped by almost 80 percent from the highest level during the period mentioned in the class-action lawsuit.

Investors who may have acquired a substantial amount of Groupon stock during the period stated in the class-action lawsuit should weigh their options and consider joining as plaintiffs before the deadline of February 19th, 2012.

Own shares of Groupon Inc (NASDAQ:GRPN)? Contact us to protect your rights.

If you have purchased shares of Groupon Inc (NASDAQ:GRPN) between May 14, 2012 and November 8, 2012, call 1-800-934-2921 right now to protect your rights. Complete the form on this page or call attorney Bill Kyros at 1-800-934-2921 right now to protect your rights.