The company has admitted that in connection with its year end close, just weeks after its Initial Public Offering it:
- failed to maintain a financial closing process and procedures that were adequately designed, documented and executed to support the accurate and timely reporting of financial results;
- failed to maintain effective controls to provide reasonable assurance that accounts were complete and accurate and agreed to detailed support, and that account reconciliations were properly performed, reviewed and approved;
- failed to 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.
Groupon admits that these weaknesses were material. "It defies credibility that the admitted internal control deficiencies existed just at year end," said Mr. Kathrein. "Disclosure of any such weaknesses in the prospectus and registration statement would have likely driven investors away."
Investors who purchased or otherwise acquired shares of Groupon common stock and who suffered losses exceeding $100,000 are encouraged to contact Hagens Berman Partner Reed Kathrein by calling (510) 725-3000. Mr. Kathrein is leading Hagens Berman's investigation. Investors may also contact the firm via email at GRPN@hbsslaw.com or by visiting www.hbsslaw.com/GRPN.