WASHINGTON, DC (January 19, 2018) — U.S. Market Advisors Law Group PLLC announces that a securities class action has been filed against Yelp, Inc. (NYSE: YELP). The class action is on behalf of investors who acquired Yelp common stock between February 10, 2017 and May 9, 2017.
Investors with losses have until March 19, 2018 to ask the Court to appoint you as Lead Plaintiff for the class. The Lead Plaintiff is a representative for absent members of the class. Investors do not need to seek appointment as Lead Plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action. Contact USMA Law Group to discuss this action.
Allegations Against Yelp
Yelp is an online review company that provides a platform for businesses and consumers to interact regarding goods and services. Yelp provides business with both free and paid services and derives most of its revenue though the sale of advertising products. As with many online businesses, adoption by mobile users was critical to Yelp’s growth and success. Investors closely tracked Yelp’s ability to generate revenue from repeat customers, particularly with local businesses, which were a primary source of revenue for the Company.
The complaint alleges that defendants misled Yelp investors regarding the retention rates for existing customers, as well as revenues and growth rates for the Company’s new customers. And, furthermore that Yelp CEO Jeremy Stoppelman personally benefited from withholding such information by selling over $25,000,000 worth of Yelp shares (approximately 20% of his Yelp holdings) while allegedly in possession of material nonpublic information regarding Yelp’s poor financial results.
On May 9, 2017, the Company announced their first quarter 2017 financial results. While Yelp’s 1Q 2017 revenue and adjusted EBITDA met the Company’s prior expectations, the Company was revising its FY2017 guidance downward to reflect poor retention rates with existing customers. On this news, Yelp’s stock price closed at $34.70 on May 9, 2017 and fell as low as $26.93 on May 10, 2017 before closing at $28.33, thereby injuring investors.
About USMA Law Group
U.S. Market Advisors Law Group PLLC is a national law firm based in Washington, D.C. The firm represents investors worldwide in U.S. securities class action lawsuits.
David P. Abel