SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP announces that the lead plaintiff motion deadline in the Groupon securities class action lawsuit pending in the Northern District of Illinois is on June 27, 2020. The Groupon class action lawsuit, Macovski v. Groupon, Inc., No. 20-cv-02581, is on behalf of purchasers of Groupon, Inc. (NASDAQ:GRPN) securities between November 4, 2019 and February 18, 2020, inclusive (the “Class Period”).
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Groupon securities during the Class Period to seek appointment as lead plaintiff in the Groupon class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Groupon class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Groupon class action lawsuit. An investor’s ability to share in any potential future recovery of the Groupon class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Groupon class action lawsuit or have questions concerning your rights regarding the Groupon class action lawsuit, please visit our website by clicking here or contact J.C. Sanchez at 800/449-4900 or 619/231-1058, or via e-mail at [email protected]. Lead plaintiff motions for the Groupon class action lawsuit must be filed with the court no later than June 27, 2020.
Groupon offers a marketplace that connects consumers to merchants through mobile applications and websites. Historically, Groupon operated in three categories: (1) Local, which comprises subcategories of local experiences, including events and activities, health and beauty, food and drink, home and garden, and automotive; (2) Goods, which includes product revenue from merchandise inventory sold directly to customers and service revenue from third-party merchants who sell products using Groupon marketplaces; and (3) Travel, which offers hotels, airfare and package deals at discounted and market rates.
The Groupon class action lawsuit charges Groupon and certain of its officers with violations of the Securities Exchange Act of 1934. Specifically, the Groupon class action lawsuit alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose that: (1) Groupon was experiencing fewer customer engagements in its Goods category; (2) Groupon relied on its Goods category to drive its sales, especially during the holiday season; (3) as a result of the foregoing, Groupon was likely to experience reduced sales; and (4) as a result of the foregoing, defendants’ positive statements about Groupon’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On February 18, 2020, Groupon reported sales of $612.3 million, a 23% decline year-over-year. Groupon’s adjusted EBITDA for fiscal 2019 was reported at $227.2 million, a significant miss from its November 2019 forecast of $270 million. Groupon also announced a “transformational plan to exit Goods” in North America by the third quarter and globally by the end of the year. On this news, Groupon’s share price fell more than 44%.
On March 25, 2020, Groupon abruptly announced that its Chief Executive Officer, Rich Williams, and Chief Operating Officer, Steve Krenzer, were “no longer serving” in their roles, but would continue as Groupon employees.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
J.C. Sanchez, 800-449-4900
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