Michael has over 20 years of experience representing individual and small business plaintiffs against the world’s large financial institutions, including Visa, Mastercard, and Chase.
Our securities lawyers are investigating potential legal claims on behalf of Groupon investors. On February 18, 2020, Groupon, Inc.announced disappointing financial results, reported plans to divest its Groupon Goods business, and disclosed a potential reverse stock split. On this news, Groupon’s stock price plummeted over 40% by February 19, 2020.
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Groupon Stock News: Groupon Shares Plummet 40% on Financial Results & Groupon Goods Exit
On February 18, 2020, Groupon announced fourth-quarter financial results for 2019 which missed analyst sales and earnings estimates. According to Bloomberg, Groupon reported earnings that “missed even the most pessimistic Wall Street estimate.”
In a letter to shareholders dated February 18th, Groupon CEO Rich Williams explained that the company had expected Groupon Goods to reach peak performance during the holidays. However, this was not the case. According to the letter,
Midway through the fourth quarter it became abundantly clear that we were not competing effectively in Goods. We saw far fewer customers engage with Goods in the fourth quarter than we anticipated, which impacted overall traffic to our site. The lower traffic ultimately impeded performance in all of our categories.
With this in mind, Williams announced Groupon’s plan to exit Groupon Goods. The CEO stated, “In short, Goods has outlived its role as a business driver and has become a significant drag on our business.”
Groupon also announced in a press release that its Board of Directors has approved a reverse stock split of Groupon common stock at a ratio of between 1-for-10 and 1-for-12. According to the announcement, the company currently expects the reverse split to be effective by the end of the second quarter.
On this news, Groupon stock plummeted over 40%, significantly harming investors. If you lost money in the Groupon stock drop, you may have a claim.
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Our Featured Securities Team
Eileen works closely with investors in securities cases and has over a decade of experience in the legal world. She received her law degree from American University in 2005.
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Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product.
Gibbs Law Group’s financial fraud and securities lawyers have more than two decades of experience prosecuting fraud. Our attorneys have successfully litigated against some of the largest companies in the United States, and we have recovered more than a billion dollars on our clients’ behalf.
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