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.

  • close
    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.
    Mark Lennihan/AP/File
    View Caption
  • About video ads
    View Caption

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...

The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here.To add or view a comment on a guest blog, please go to the blogger's own site by clicking on


We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.