Groupon has canceled its IPO roadshow, which was scheduled for next week, Anupreeta Das of the Wall Street Journal reports. The SEC has reportedly been asking questions about the internal email that was leaked two weeks ago that struck many observers, including us, as likely violating the SEC's pre-IPO "quiet period" rules.
Two weeks ago, infuriated by constant media bashing of his company, Groupon CEO Andrew Mason wrote a long email to Groupon employees laying out his case for why the company was in great shape.
This email took on critics point by point, arguing that Groupon had plenty of cash, was not a Ponzi scheme, and would become a massive and profitable company. The email was immediately leaked to Kara Swisher at All Things D, prompting concerns about the quiet period.
In 1996, Wired was forced to pull its own IPO after a similar memo was leaked to the Internet.
More to follow...
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