STEVENSON, Md.--(BUSINESS WIRE)--

The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Yelp, Inc. (NYSE: YELP) (“Yelp” or the “Company”) securities during the period between February 10, 2017 and May 9, 2017, inclusive (the “Class Period”). Investors who wish to become proactively involved in the litigation have until March 19, 2018 to seek appointment as lead plaintiff.

If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Yelp securities during the Class Period. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants’ failure to disclose during the Class Period that Yelp’s transition from a Cost-Per-Thousand-Impressions (CPM) to a Cost-Per-Click (CPC) model in fiscal year 2016 created a distinct cohort of local advertisers that would reach the end of their contracts during the first part of fiscal year 2017, 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 as a result of the lower retention rates, Yelp was not on track to achieve its financial guidance during the Class Period.

According to the complaint, following a May 9, 2017 announcement that the Company was lowering its guidance, that the local advertising accounts did not rise as expected, and the retention rates impacted expectations, the value of Yelp shares declined significantly.

If you have suffered a loss in excess of $100,000 from investment in Yelp securities purchased on or after February 10, 2017 and held through the revelation of negative information during and/or at the end of the Class Period and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please contact Brower Piven either by email at [email protected] or by telephone at (410) 415-6616.

Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

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