That’s a serious punch in the mouth after the SEC announced a possible look into Groupon’s financials. The SEC hasn’t made up their mind yet though, unsure if they’re launching a formal investigation.
This isn’t the first time Groupon’s been seent the the SEC “principle’s” office. CNET reports:
An SEC review of Groupon’s accounting procedures forced the daily deals provider to revise its IPO filing papers last year after the company reported that it generated $713.4 million in revenue in 2010, while the SEC said that the figure should be $312.9 million.
Ouch – sounds like Groupon’s playing with funny money practices. In fact, my intuition seems to have some legitimacy behind it. A couple of old grumpy accountants believe there are some seriously funky accounting practices at play.
Next, we question whether there is any real corporate governance at Groupon whatsoever. Usually, when material weaknesses surface, heads roll…not at Groupon! Instead, the board of directors rewarded the Company’s chief financial officer with a salary increase and bonus.
Sounds like there are some dangerous inconsistencies happening at Groupon.
Something to consider if you’re planning on investing! I kid, I kid. Seriously though, you might want to wait a little while before buying their stock – it looks like it could be heading even further south.