Photo: Flickr, CC / diloz
The Securities and Exchange Commission is looking into why Groupon revised its first quarterly earnings report as a public company, according to a report in the Wall Street Journal.Groupon made the revision on Friday after market close, when the company discovered that a higher number of customers than usual returned their coupons unused in January, says the report. The revision increased Groupon’s loss by $22.6 million.
Groupon’s stock plunged almost 17% today.
The Journal reports that the company’s chief accounting officer Joe Del Preto discovered that the number of refunds in January was higher than all of Groupon’s models had predicted.
According to the Journal, Groupon did not have enough money in its reserves to cover the refunds.
The SEC has not launched a formal investigation, says the report. Groupon’s top execs have reportedly examined the situation and are confident that only certain types of coupons are being returned.
So this could all blow over and turn out to be no big deal. But drawing the attention of the SEC is never a good thing. Especially when Groupon had to amend its IPO filing twice after the SEC complained.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.