Groupon Insiders Dump Stock and Send Share Prices Tumbling

Jun 01, 2012


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Things aren't going so well at Groupon today. During  early trading, stocks fell 8.7% -- to $9.72. According to CNET, the stock plunge was precipitated by "the insider lockup agreement, or the period after an initial public offering when insiders are unable to sell their stock."

Many are pointing out that this is a cautionary tale for Facebooks investors, whose insider lockup period is a mere 90 days long--much shorter than the one for Groupon, which went public last fall. Since then the daily deals company has been plagued with a number of problems. From growing competition to concerns about the effectiveness of the promotions to possible Securities and Exchange Comission probes, Groupon has been troubled.

(www.groupon.com)