Since coming public in November, Groupon (NASDAQ:GRPN) has lost about half its value. But early this week, the company had a blow-out earnings report, which popped the stock. Unfortunately, the Financial Industry Regulatory Authority (FINRA) is now investigating the trading in the stock ahead of the earnings report.
The investigation is still in the early stages and may result in nothing. After all, Groupon’s stock was heavily shorted, and there may have been a “short squeeze.”
Then again, Groupon has already had issues, such as a restatement of its earnings. The company’s auditor also reported a “material weakness” in its internal controls.
But Groupon has made some moves to help improve its systems. For example, the company recently added two top members to its board: American Express’ (NYSE:AXP) chief financial officer Daniel Henry and Deloitte’s chairman Robert Bass.