Another day, another Yelp lawsuit: According to a press release, legal firm Levi & Korsinsky has filed a class action lawsuit against the review site for misleading investors who purchased Yelp stock between October 29, 2013 and April 3, 2014. The suit alleges that Yelp made a series of "materially false and misleading statements" in regards to the true nature of its "reviews that are available on the website and ‘firsthand’ experience of users." It also claims that Yelp lied about "the robustness of its algorithms and processes" designed to screen unreliable reviews, and about its "financial growth prospects."
The case is very similar to another class action lawsuit filed last month that also accuses the company of defrauding shareholders. It alleges that Yelp executives sold off more than $81 million in "artificially inflated stock while deceiving shareholders about the company's business practices and financial outlook." Yelp has denied the allegations and has announced that the company plans to "vigorously contest them." The review site has yet to comment on the latest lawsuit.