class actions settlements

If you ever bought a Groupon might be getting an email this week about the class - action involving the expiry date on the company's daily deals.

Groupon has settled the case and paid $ 8500000 Cash proposed to do it - but, as with many costume class - action, a good chunk of the money will go to lawyers. Customers are likely to be the only penny.

Seventeen Groupon subscribers each filed individual lawsuits in recent years, on the expiration date on a Groupon deal and how the company has been sold or promoted this offer.

The suit alleges, among other things, that the restrictions imposed Groupon deal declared illegal - like " must use gift certificate in one visit " - that violate a variety of gift - card rules. For example, federal law makes it illegal to sell gift cards that expire in less than five years.

This 17 lawsuits have been rolled into one and transferred to California district court, where a judge certified the application as a class action last year. That brings the whole Groupon customer base in the process.

Groupon has solved the case last month, without admitting fault or bad. As part of the agreement, Groupon merchants are exempt from any liability in connection with the allegations.

Completion : On the client side, the class actions settlements includes anyone in the U.S. who bought a Groupon deal or accept a gift from November 1, 2008 to December 1, 2011.

But what the customer is actually going to get fixed pretty murky. The fundamental requirement of the village seems to reflect almost exactly the current policy on Groupon coupon expires.

Groupons have two separate values ​​: the actual amount paid (like $ 20 for $ 50 worth of vouchers promising spa services at the local level) and the amount of promotion (which is $ 50).

While the number of promotional carry an expiration date, the policy is that expired Groupons Groupon may be redeemed at any time on any time limit for the amount to be paid. If the $ 50 spa voucher that you paid $ 20 for expired last month, you can still redeem it at the spa service valued at $ 20.

Completion provide people who apply for " completion voucher " that can be redeemed with the merchant product " to the purchase price you pay. "

How is it different from what Groupon already offers ? Neither party is saying.

A Groupon spokesman said the company is " nothing to add beyond what 's in the notification " that some customers have received. Robbins Geller Rudman & Dowd Law Firm, which is representing the defendants, did not return a request for comment.

Completion of the transaction has an easy twist : If the merchant will not honor the voucher settlement, customers can apply both to fund the completion and be eligible for a refund check for what they paid plus 20 % of business promotion. Further details about the process are available at grouponvouchersettlement.com.

Also as part of the agreement for the next three years Groupon has agreed not to sell more than 10 % of daily transactions with an expiry date of less than 30 days. Groupon also agreed to change the language in advertising and on its website to make the restrictions clear.

Groupon sent a letter to retailers this week advising them of their settlement warning and explain that it will not change policy on Groupon deals expire. A copy of the letter to the recipient gives CNNMoney.

" All you are required to do is to honor the voucher for the cash value paid, not the amount of promotion that has ended, " wrote Groupon. " If you 've worked with us recently, this should not be surprising that all of our vouchers can be used for its cash value in eternity. "

Expect lower pay : In accordance with the provisions of the proposed settlement, Groupon will pay $ 8.5 million in cash, but a good chunk of the money will go to lawyers. Customers can take home just pennies.

Brought legal team asked the court to award attorney fee " of up to 25 % of the settlement cash, totaling more than $ 2.1 million plus approximately $ 75,000 allocated for donations to civic organizations or non - profit.

Applicants plumbcostum of - 17 Groupon customers who brought the complaint - would receive a proposal for $ 500 each. The remaining money will be divided between those who complete the application form and put in for their share of the settlement.

That leaves about $ 6.3 million or more will be divided into classes which can include millions of people. Groupon has nearly 34 million active subscribers - people who bought at least one business in the past 12 months - from December 31. A spokesman refused to come out how many customers based in the United States.

Even if half of active users Groupon is to submit an application, each applicant will receive a payment of about 37 cents gain.

Groupon said in his letter that traders expect only 2 % of the customers to meet the requirements and submit an application.

Even if this is the case, that the 660,000 applicants will receive a payment of approximately $ 9.50 each.
Groupon customers have until July 6 to submit an application if they wish to be included in the settlement. The judge handling the case is scheduled for trial in a court in California on July 20 propuşide settlement terms, after which it will decide whether to uphold or reject the deal. class actions settlements