NEW YORK, Aug. 25, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against Yelp, Inc. ("Yelp" or the "Company") (NYSE:YELP) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under 14-cv-03832, is on behalf of a class consisting of all persons or entities who purchased Yelp securities between October 29, 2013 and April 3, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Yelp securities during the Class Period, you have until October 6, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Yelp operates as an online local guide that connects people primarily with boutiques, mechanics, restaurants, and dentists. The company's local advertising services include a free online business account that enables businesses to view business trends, use the revenue estimator tool, message customers, update information, and offer Yelp deals and gift certificates.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements concerning the Company's true business and financial condition, including but not limited to the true nature of the so-called "firsthand" experiences and reviews appearing on the Company's website, the robustness of its processes and algorithms purportedly designed to screen unreliable reviews, and the Company's forecasted financial growth prospects and the extent to which they were reliant upon undisclosed business practices, including but not limited to requiring business customers to pay to suppress negative reviews.
The misrepresentations made by Defendants concerning the Company's current financial and business condition, including its forecasted financial and business condition alleged herein, were each materially false and misleading when made and caused the Company's stock to trade at artificially inflated prices of over $98.00 per share on March 4, 2014.
According to the complaint, as the true facts concerning the Company's business practices began to be revealed to the market through a series of articles and disclosures starting on March 31, 2014, the Company's stock price declined, 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.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
