3 ms·
It appears that the reason they are suing is because the 4th quarter results were posted and then based on that information people bought up the stock and then
by jetti 15y ago
It appears that the reason they are suing is because the 4th quarter results were posted and then based on that information people bought up the stock and then Groupon came back and said "Ya...about that information. We made a mistake" and the real results were much worse than they originally said, which makes the stock price drop.
I think it is a valid approach because a company should be able to get its own accounting correct. However, based on the creative accounting from Groupon (and other issues) I'm really surprised the FTC allowed them to have an IPO to begin with.
- run4yourlives 15y agoGroupon's claims were so outlandish that a layman could have figured they weren't up to snuff. At some point, personal responsibility for your own investments is part of the risk.
- ceejayoz 15y ago> Groupon's claims were so outlandish that a layman could have figured they weren't up to snuff. If that's the case, it's pretty clear-cut fraud, which supports the lawsuit argument even more.