Case: Groupon, Inc.

Court: Northern District of Illinois

Class Period: 11/4/2011 - 3/30/2012

Lead Plaintiff Deadline: 6/4/2012

Attorneys: Frederic S. Fox, Laurence D. King, Donald R. Hall, Jeffrey P. Campisi, Pamela A. Mayer

April 3, 2012 – Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has been investigating Chicago, Illinois-based Groupon, Inc. (“Groupon” or the “Company”) (Nasdaq: GRPN) for potential violations of the federal securities laws. Investors who purchased Groupon’s publicly traded securities since the Company’s initial public offering (“IPO”) on November 4, 2011, including investors in the IPO, may be affected.

On February 8, 2012 after the market closed, Groupon reported its first earnings report since going public in November for the fourth quarter ended December 31, 2011. The Company reported that revenue increased 194% to $506.5 million in the fourth quarter compared to the fourth quarter of 2010, but also reported a net loss of $42.7 million, or 8 cents per share.

According to an article appearing in the Wall Street Journal, Groupon’s loss was disappointing and “surpris[ed] investors who had expected a small profit from the daily deal firm.”

Then, on March 30, 2012, after the market closed, Groupon announced a revision of its previously reported financial results for the fourth quarter and year ended December 31, 2011, including an increase to its fourth quarter operating expenses that reduced its earnings per share by $0.04 per share. The Company said the revision was “primarily related to an increase to the Company’s refund reserve accrual. . . .” Additionally, Groupon disclosed that it had “a material weakness in [its] internal control over financial reporting” for the year ending December 2011 and that it did not have adequate policies and procedures in place “to ensure the timely, effective review of estimates, assumptions and related reconciliations and analyses, including those related to customer refund reserves.” Following these disclosures, the Wall Street Journal reported that the SEC had commenced a probe to examine Groupon’s revisions of its first set of financial results as a public company.

On April 2, 2012, the first trading day following the March 30 disclosures, Groupon’s share price declined by $3.105 per share, nearly 17%, to close at $15.275 per share.

If you purchased Groupon’s common stock and would like to discuss our investigation, please e-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it .