Yelp Inc. investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, 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 complaint alleges that 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 heavy trading volume.
The complaint alleges that, throughout the Class Period, the defendants made false and misleading statements and/or failed to disclose that: (i) Yelp’s transition from a Cost-Per-Thousand-Impressions 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.
If you are a member of the class described above, you may no later than March 19, 2018 move the Court to serve as lead plaintiff of the class, if you so choose.
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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
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