Investigation of Groupon, Inc.
You Have Legal Options
Groupon, Inc. (GRPN) Accused of Misleading Shareholders
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.