Newman Ferrara LLP announces that a class action lawsuit has been
commenced in the United States District Court for the Northern District
of California on behalf of purchasers of Yelp Inc. (“Yelp” or the
“Company”) (NYSE:YELP) common stock during the period between October
29, 2013 and April 3, 2014 (the “Class Period”). The complaint charges
Yelp and certain of its officers and directors with violations of the
Securities Exchange Act of 1934.
Investors who purchased Yelp common stock during the Class Period may
apply with the Court to be appointed lead plaintiff no later than
October 6, 2014. The lead plaintiff will direct the litigation on behalf
of the other class members.
Yelp, based in San Francisco, California, operates as an online local
guide that connects consumers with businesses, including retail stores,
service providers, and restaurants and allows consumers to review and
rate such businesses. The Company’s marketing services allow businesses
to view trends, message customers, update information, and offer deals
and gift certificates.
The complaint alleges that during the Class Period, defendants issued a
series of materially false and misleading statements concerning Yelp’s
true business and financial condition, including but not limited to the
veracity and accuracy of so-called “firsthand” experiences and reviews
of businesses, the ability of the Company to screen unreliable reviews,
and the Company’s forecasted financial growth prospects, including
material omissions concerning the Company’s reliance on undisclosed,
anti-consumer practices, such as allowing business customers to pay to
suppress negative reviews. When the truth emerged about Yelp’s business
practices, the Company’s stock price plummeted – falling from a close of
$80.18 per share on April 1, 2014, to a close of $65.76 per share on
April 4, 2014.
Investors who purchased Yelp stock during the Class Period may
contact Newman Ferrara partner Jeffrey M. Norton (jnorton@nfllp.com)
by email or call (212) 619-5400 to discuss this lawsuit or the lead
plaintiff process.
Newman Ferrara maintains a multifaceted practice based in New York City
with attorneys specializing in complex commercial and multi-party
litigation, securities fraud and shareholder litigation, consumer
protection, civil rights, and real estate. For more information, please
visit the firm website at www.nfllp.com.
Copyright Business Wire 2014