RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Yelp Inc. (NYSE: YELP) (“Yelp” or the “Company”) securities between February 10, 2017 and May 9, 2017, inclusive (the “Class Period”).
Yelp shareholders may, no later than March 19, 2018, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Yelp and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
Yelp operates a social networking, user review, and local search website. The Company provides the site as a guide for visitors to find reviews and details about local businesses.
On February 9, 2017, Yelp reported Fiscal 2016 financial and operational results, and provided a “business outlook” for Fiscal 2017. For Fiscal 2017 the Company reported that “net revenue is expected to be in the range of $880 million to $900 million” and that adjusted EBITDA “is expected to be in the range of $150 million to $165 million.”
The shareholder class action complaint alleges that Yelp and certain of its senior executive officers made false and misleading statements and/or failed to disclose that: (i) Yelp’s transition from a Cost-Per-Thousand-Impressions (“CPM”) to a Cost-Per-Click (“CPC”) model in Fiscal 2016 created a distinct cohort of local advertisers that would reach the end of their contracts during the first part of Fiscal 2017; (ii) new customers that signed on with Yelp under the CPC pricing model had lower retention rates because the customers did not effectively compete with Yelp’s more established customers; and (iii) that, as a result of the lower retention rates, Yelp was not on track to achieve its financial guidance or results during the Class Period.
On May 9, 2017, Yelp reported its First Quarter 2017 financial and operational results and reduced its Fiscal 2017 business outlook. Specifically, the Company announced that it had decreased its net revenue outlook for Fiscal 2017 down to $850 – $865 million from $880 – $900 million, and that it had decreased its adjusted EBITDA outlook for Fiscal 2017 down to $130 – $145 million from $150 – $165 million. Following this news, shares of the Company’s stock declined $6.37 per share, or over 18.3%, to close on May 10, 2017 at $28.33 per share, on unusually heavy trading volume.
If you are a member of the class, you may, no later than March 19, 2018, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.