A Yelp Shareholders Lawsuit Filed Against The Company Has Been Dismissed

Yelp Shareholder Lawsuit dismissed by District Judge

A lawsuit filed by Yelp shareholders against the web platform has been dismissed by U.S. District Judge Jon Tigar.

The lawsuit claimed that the company misled investors about the authenticity and quality of its reviews, and claims that Yelp manipulated those reviews to favor paying advertisers.

In a November 24 decision in San Francisco, Tigar said reasonable investors would understand that not all Yelp reviews are real, particularly given the company’s admission that its technology to screen user-generated content for its website is not foolproof.

He also said there was no proof to show that Yelp was attempting to defraud its shareholders.

Tigar in April dismissed an earlier version of the complaint, which sought class-action status.

“Shareholders led by Joseph Curry accused Yelp of inflating its share price by falsely touting the reliability of its reviews, as part of a calculated strategy to extort businesses into buying ads or making payments in exchange for removing bad or fake reviews,” MSNBC says.

Lawyers for the plaintiffs and defendant have not immediately returned messages asking for further information.


Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at OnlineDegree.com.