Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Yelp, Inc. (NYSE: YELP) in connection to alleged violations of securities laws by YELP. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in Yelp, Inc. from February 10, 2017 until May 9, 2017.
The class action complaint specifically alleges that during the period in question, YELP might have provided false and/or misleading material information, and/or failed to disclose adverse material information, namely: that when the company transition to a cost-per-click model in FY2016, from its previous cost-per-thousand-impressions model, the move resulted in a group of local advertisers whose contracts would end at the beginning of FY2017; that the company experiences lower rates of retention with respect to new customers who joined after the transition to the new model, because these customers could not effectively compete with the company’s longer customers with more of a presence on the platform; and that because of these changes, the company was behind benchmarks with respect to its financial guidance. The complaint alleges that when true facts emerged, investors suffered losses.
According to the company’s website, Yelp, Inc. is a technology company that develops a platform for users to review local businesses and make online reservations. The company was founded in 2004, and reports that by the end of the third quarter of 2017, its users “have written more than 142 million reviews” on the platform. The company sells ads to local businesses. Users can also find local events on Yelp and communicate with other users. Yelp, Inc. trades on the New York Stock Exchange exchange under the symbol YELP.