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I wonder what Groupon's Spokescat (http://www.quora.com/Groupon/Whats-the-story-behind-the-Grou...) has to say about this fiasco.

Hilarious irony aside, what particularly is it that investors believe the company misrepresented about their financials? For people who didn't follow this too closely?

According to MarketWatch:

The Complaint alleges that defendants misrepresented or failed to disclose that: (a) the Company materially understated refund reserves for fourth quarter 2011 due to a failure to properly account for coupon refunds; (b) as a result, the Company materially misstated its previously reported fourth-quarter and full-year 2011 financial results; and (c), the Company lacked adequate internal and financial controls.

According to http://venturebeat.com/2012/03/31/why-groupon-is-poised-for-... it's how liabilities related to refunds have been reported

Yea. Basically a ton of accounting stuff that, in the eyes of the plaintiffs and the class action lawyers, Groupon had a duty to disclose before the IPO.

Imgur screencap because the website is down:

http://i.imgur.com/YpkNp.png

Thanks. Traffic jam. Looks like it's back up...

I can't wait to see what happens to their stock in the morning...

The Ultimate Irony of Groupon