Groupon stock closes at lowest level since IPO

April 4, 2012

(AP) -- Groupon's stock has closed at its lowest level ever amid growing scrutiny over its business just five months after it went public.

Shares of Groupon Inc. closed at $15.02 on Tuesday. That's the lowest since the company went public in November, when its of stock priced at $20 a share.

The Chicago-based company is facing a shareholder lawsuit and a possible review by federal regulators. It revised its fourth-quarter earnings on Friday, lowering its reported revenue by 3 percent and widening its losses. Groupon said it hadn't set enough money aside for refunds.

The reported earlier that the is examining Groupon's revision. That's a common practice for any company that issues a restatement, but it may have raised a red flag for Groupon investors who were already looking at the company closely because of previous blunders.

"In general, any company that issues a restatement is likely to get a close look," said Brian Lane, a former director of the SEC's corporation finance division, who is an attorney at Gibson, Dunn & Crutcher in Washington. Lane didn't comment on Groupon's situation.

That Groupon revised its results and disclosed weakness in its internal financial controls are "two things that are not good," said Walter Van Dorn, a former special counsel in the SEC's corporation finance division who now heads law firm SNR Denton's corporate practice in New York.

The company has had "lots of bumps in the road," said Van Dorn. "It wouldn't surprise me if they're under a magnifying glass at the SEC."

Groupon had no comment on the reported SEC review or on the shareholder lawsuit.

Explore further: Report: Groupon may delay IPO

0 shares

Related Stories

Report: Groupon may delay IPO

September 6, 2011

Groupon Inc. may delay its plans to go public due to concerns about the stock market's stability, according to a report.

Groupon's public valuation close to $20 bln: report

April 15, 2011

US coupon deals website Groupon will likely pick Goldman Sachs Group and Morgan Stanley to be principal underwriters for its public offering later in the year, valuing the company at up to $20 billion, the Wall Street Journal ...

Groupon IPO expected in October-November: report

September 15, 2011

Bargaining website Groupon's planned IPO is back on track after a run-in with regulators and it hopes to go public in late October or early November, the New York Times reported Thursday.

Top Groupon exec jumps back to Google

September 24, 2011

Groupon revealed that the startup's chief operating officer was leaving after just five months for a job at her former employer -- Google.

Groupon launching in Thailand

February 27, 2012

Groupon announced Monday it was launching in Thailand, the 47th country for the daily deals site outside the United States.

Recommended for you

Making AI systems that see the world as humans do

January 19, 2017

A Northwestern University team developed a new computational model that performs at human levels on a standard intelligence test. This work is an important step toward making artificial intelligence systems that see and understand ...

Firms push hydrogen as top green energy source

January 18, 2017

Over a dozen leading European and Asian firms have teamed up to promote the use of hydrogen as a clean fuel and cut the production of harmful gasses that lead to global warming.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.