Groupon Stock Price Starts Plummeting After SEC Probe
The U.S. Securities and Exchange Commission is investigating Groupon restating the fourth-quarter results according to a source with The Wall Street Journal. The SEC’s probe into Groupon is currently in a “preliminary stage.” This would be the third time that the SEC would investigates Groupon since their IPO on November 4th. The news about the investigation has caused Groupon’s stock price to drop about 17% to $15.27.
Last week Groupon had to restate their fourth-quarter earnings results by $14.3 million to $492.2 million from $506.5 million. The net income fell by $22.6 million. Groupon has hired Ernst & Young and KPMG to oversee their operations. The restatement was due to higher-than-expected refund rates.