Group deals service Groupon has delayed its plans for an initial public offering due to stock market volatility, according to a Wall Street Journal report.
Groupon, which was originally planning to go public after the Labor Day holiday, still has plans for an IPO, but the company is reassessing the timing for it on a week-by-week basis, according to the Journal’s anonymous source. The company also canceled a roadshow that had been scheduled for next week to attract potential investors to the stock.
While stock market volatility could be one reason for Groupon putting its IPO on hold, it could also have something to do with a leaked internal document. According to the report, the U.S. Securities and Exchange Commission contacted a Groupon attorney about the leaked document.
The document, which was written by CEO Andrew Mason to employees, argued against negative criticism. It addressed issues like Groupon’s available cash flow and its Ponzi scheme accusation as well as asserting that the company would become very successful.
Since making public statements about the financial status of a company during an IPO process is prohibited by SEC rules, it could mean that Groupon’s leaked document is in violation.
Groupon and the SEC have not immediately responded to VentureBeat’s request for comment.