Shareholder Alert: Robbins LLP Is Investigating the Officers and Directors of Yelp Inc. (YELP)
April 29 2020 - 03:17PM
Business Wire
Shareholder rights law firm Robbins LLP announces that it is
investigating the officers and directors of Yelp Inc. (NYSE: YELP)
for breaches of fiduciary duties, unjust enrichment, and violations
of the Securities Exchange Act of 1934. Yelp operates a platform
that connects consumers with local businesses.
If you suffered a loss as a result of Yelp's misconduct, click
here.
Yelp Inc. (YELP) Shocks Investors by Slashing Revenue
Guidance and EBITDA
According to the pending class action lawsuit filed against
Yelp, the Company derives substantially all of its revenue from the
display of advertising products on its website and mobile app. In
fact, advertising revenue accounted for 91% of the Company's 2017
revenue. Throughout 2016 and early 2017, Yelp emphasized a "strong,
embedded client base" and high retention levels for advertisers.
Contrary to these positive statements, Yelp was actually
experiencing weak revenue and declining client retention in its
local advertising business as a result of its move from a
cost-per-impression system to a cost-per-click advertising system
in 2015. Many of the advertisers added during the first quarter of
2016 were experiencing low user engagement under the new
cost-per-click advertising system and therefore leaving Yelp's
advertising platform at the conclusion of their 12 month contracts.
To cover up the loss of clients and revenue, in early 2017, certain
Yelp officers and directors made a series of misleading statements
about the purported success of the Company's business and
advertising model. However, the truth was revealed when Yelp
reported its first quarter 2017 financials on May 9, 2017, slashing
its revenue guidance and EBITDA due to the churn of advertisers in
the first quarter of 2017.
Yelp Inc. (YELP) Shareholders Have Legal Options
Contact us to learn more: Leo Kandinov (800) 350-6003
LKandinov@robbinsllp.com Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click Here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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Leo Kandinov Robbins LLP 5040 Shoreham Place San Diego, CA 92122
LKandinov@robbinsllp.com (619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com
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