Tuesday, April 3, 2012

SEC Investigates Groupon After Earnings Restatement

Uploaded by on Apr 3, 2012
The Securities and Exchange Commission is investigating online deal site Groupon after the company announced their first set of financial results were incorrect.

Groupon issued a restatement of their fourth quarter earnings, saying it hadn't set aside enough money for customer refunds. Despite investor worries the Chief Financial Officer Jason Child says the company is "confident in the fundamentals" in its business.

This is not unfamiliar to the fast growing company. Groupon twice revised its finances before its November IPO.

However, because of restatement, Groupon shares plummeted yesterday, down 17% to $15.28 a share.

No comments: