Groupon woes continue with lawsuit, low earnings

Groupon's stock hit an all-time low last week, and the company has been hit with a lawsuit from shareholders for dishonest business practices.

By , Guest blogger

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    During happier times, employees and guests of Groupon celebrate the company's IPO at Nasdaq. Since its dazzling opening just six months ago, Groupon stock has plunged to an all-time low, and the company has come under fire for being less than truthful about the state of their finances.
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So it turns out that Web 2.0 investing isn't all exits and lollipops and blazers with hoodies underneath...

Things get serious whenever you're talking billions instead of a few million between friends.  I admire Groupon founder and CEO Andrew Mason for trying to keep things the way they were.  But that's not how it works when you're a public company with hundreds of thousands of shareholders - the frat boy-wonder schtick just isn't cute anymore.

From TIME:

Recommended: Tech stocks: How seven recent IPOs have fared

Groupon’s headaches are growing more serious. Just days after an accounting snafu forced the discount website to reveal a greater-than-reported fourth-quarter loss, the company was slapped with a shareholder lawsuit accusing its top executives of a “fraudulent scheme” that “deceived the investing public” about the company’s prospects and business. As if that wasn’t enough, Groupon’s stock hit an all-time low Wednesday and it faces a probe by the Securities and Exchange Commission.

Also, check out Francine's expert take on what responsibility Ernst & Young have here, if any, for the weak controls and restatement...

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