Ademi & O’Reilly, LLP is investigating possible securities fraud claims against Groupon Inc. (Nasdaq: GRPN) resulting from inaccurate statements Groupon made regarding its internal controls, business practices, financial statements and prospects.
The investigation focuses on whether Groupon issued false and misleading statements regarding its business practices and prospects. Specifically, substantially fewer customers than anticipated were using Groupon Goods, which impacted overall traffic to Groupon. The lower traffic was impeding performance in all of Groupon’s categories. Moreover, Groupon Select was over-indexed to Groupon Goods, which was pressuring margins and driving higher than anticipated customer acquisition costs.