The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Yelp Inc. (NYSE: YELP) who purchased shares between February 9, 2017 and May 9, 2017. The action, which was filed in the United States District Court for the Northern District of California, alleges that the Company violated federal securities laws.
In particular, the complaint alleges that (i) Yelp’s transition from a Cost-Per-Thousand-Impressions (“CPM”) 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 up 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. On May 9, 2017, the Company announced their first quarter 2017 financial results and announced it was revising its full year 2017 guidance to reflect poor retention rates with existing customers.
Shareholders have until March 19, 2018 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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