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Yelp Advertising Figures, Revenue Losses Lead to Derivative Suit

April 21, 2020, 9:30 PM

Yelp Inc.‘s directors and officers allegedly misled investors about problems with advertiser churn, according to a shareholder derivative suit filed Tuesday in California federal district court.

The online review and recommendation platform didn’t disclose how less-engaged advertisers were unsatisfied with Yelp and terminating their contracts, the complaint filed in the U.S. District Court for the Northern District of California said.

“We continue to deny these allegations, and vigorously contest them,” a Yelp spokesperson said.

The problems in 2016 and 2017 led Yelp to create a team to improve retention, but the company didn’t factor “this smaller book of business ...

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