Sarah Mirando  |  April 1, 2013

Category: Legal News

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Judge Approves LivingSocial Class Action Settlement

By Mike Holter

 

LivingSocialA federal judge last week granted final approval to the LivingSocial class action lawsuit settlement, resolving claims the daily deal site issued vouchers with illegal expiration dates.

On March 22, U.S. District Judge Ellen Segal Huvelle approved the LivingSocial settlement, which will provide over $4.5 million to a class of 10.9 consumers who purchased LivingSocial deals prior to October 1, 2012 and received deal vouchers with allegedly illegal expiration dates and other restrictions. Any remaining funds will go to the Consumers Union and National Consumer League as cy pres awards.


LivingSocial also agreed to change the way it issues vouchers, including by clearly spelling out the difference between a deal’s paid and promotional value and their respective expiration dates.

In approving the class action settlement, however, Judge Huvelle slashed plaintiff attorneys’ fees in half, awarding $1.35 million in fees to the 12 law firms that represented plaintiffs in the multi-district litigation instead of the $3 million requested in the original settlement agreement.

The judge agreed with objector complaints that the fees were too high, citing inefficient staffing and high hourly rates, and awarded 18 percent of the settlement fund.

“A modest percentage is appropriate in this case given the limited value of the direct benefits to the Class Members, the small number of Class Members who will benefit, the proportionally large cy pres distributions in comparison to the monetary relief awarded to the Class Members, and the somewhat dubious value of the injunctive relief,” Huvelle wrote.   
 
The deadline to file a claim for the LivingSocial Class Action Lawsuit Settlement has expired. If you missed out, sign up for our free weekly newsletter or check out our Open Class Action Lawsuits section to see which class action settlements are still accepting claims.


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Updated April 1st, 2013

 

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5 thoughts onJudge Approves LivingSocial Class Action Settlement

  1. Joy Broderick says:

    I submitted my claim on line prior to deadline to be included in the settlement. I have not heard back. Please check the status of my claim for voucher #100021647292

  2. Reese says:

    I submitted claims through the lawsuit settlement site and never received a check. For me the site submission process did not seem to be working properly.

  3. Joy Broderick says:

    Have any checks been issued from this settlement?

    1. Alisa says:

      I just got my check. $160!

  4. Judi Stanish says:

    About 6 months ago I wrote asking for the site where I could find the form to submit a claim, and only today did I see a reply, which was sent to me months ago, but never went to my e-mail, it went to the lawsuit site. I wouldn’t check there since my e-mail address was readily available and visible. Now I feel like I’ve been screwed AGAIN, first by Living Social and now by the lawsuit settlement website. Check your correspondence and you’ll see I replied in a more than timely manner and should be considered in the final settlement with everyone else. If you have any questions, please call me at 856-464-1942. I lost money on those deals because of the expiration dates, in addition to the certificate for a restaurant that was no longer open for business. Thank you.

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