Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Yelp, Inc. (NYSE: YELP).
Beginning in 2016, the Company concentrated its efforts on local business advertising revenue through promotional offers to local businesses, resulting in a substantial volume of advertisers added in Q1 2016 under one-year contracts with large early termination fees. Subsequently, despite knowing that a significant number of contracts would terminate in late 2016 and early 2017, the Company continued to tout its high advertiser retention levels to investors, even blaming a late 2016 slowdown on the election cycle and vacation time rather than any systemic problem. On May 9, 2017, the Company disclosed its financial results for Q1 2017 including a significant decrease to revenue guidance, resulting in the Company’s share value plummeting by more than 18%.
Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws. Recently, the court in that case denied the Company’s motion to dismiss in part, allowing the case to move forward.
KSF’s investigation is focusing on whether Yelp’s officers and/or directors breached their fiduciary duties to Yelp’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Yelp shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (email@example.com), or click here.