Online coupon website Groupon has reinstated
its fourth quarter results after auditor Ernst & Young
(E&Y) warned of “material weaknesses” in the company’s
accounts.

E&Y raised question over the company’s
loss accounting practices and some of the accounting practices
prior to its flotation on the New York stock exchange last
year.

The revised account’s reduced Groupon’s
revenues by $14.3m and net income by $22.6 million.

According to the Wall Street Journal
the Securities and Exchange Commission might investigate
circumstances leading to Groupon’s restatement.

Groupon’s shares have fallen more than 15%
since the announcement.