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Groupon class action lawsuit overview:
- Who: Groupon has agreed to a $13.5 million class action settlement with a group of its investors.
- Why: The settlement agreement was made to resolve claims Groupon misled investors about its financial state prior to announcing that it was going to stop selling physical goods and that two of its top executives were leaving the company.
- Where: The class action lawsuit was filed in Illinois federal court.
Groupon has agreed to pay $13.5 million to resolve claims it misled investors about the state of its finances prior to the company ending its sale of physical goods and announcing that two of its top executives were leaving.
Investors are seeking preliminary approval of the proposed settlement agreement, which they say will recover 9.6% of the maximum damages that could possibly be made available to investors.
The best-case scenario for investors would have been a settlement agreement worth approximately $140 million, according to the investors motion for preliminary approval.
Investors filed a class action lawsuit against Groupon in April 2020 over allegations that the company had withheld from its shareholders that its sales of physical goods were suffering, reports Law360.
Further, investors argued Groupon had made misleading positive statements about the company and failed to be transparent about the importance its sales of physical goods had on its finances.
Groupon’s former CEO accused of misleading investors
Groupon’s then-CEO Rich Williams said in a November 2019 press release that he was confident about how the company was performing, which investors argue artificially inflated its stock price, reports Law360.
Investors argued in their initial complaint against Groupon that its stock price would end up dropping after the company announced months later in February that it was ending its sales of physical goods.
“As a result of these materially false and/or misleading statements, and/or failures to disclose, Groupon’s securities traded at artificially inflated prices during the class period,” the investors said, reports Law360.
In 2019, Groupon attempted to get a class action lawsuit dismissed that was filed by a user accusing the company of improperly using Instagram photos and usernames for commercial purposes without receiving consent.
Were you financially injured after Groupon announced it was ending its sale of physical goods? Let us know in the comments!
The plaintiffs are represented by Louis C. Ludwig of Pomerantz LLP.
The Groupon Physical Goods Class Action Lawsuit is Rahal, et al. v. Groupon Inc., et al., Case No. 1:20-cv-02581, in the U.S. District Court for the Northern District of Illinois.
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20 thoughts onGroupon Agrees To Pay $13.5 Million To Resolve Claims It Misled Investors Over Its Financial State
How can I submit a claim for this lawsuit?
Today, November 2, 2023, I bought three massage sessions through Groupon. The payment was automatically charged through my through my debit card. The money is gone. Gone to a company that does not exist.
Me again, Frances Gara. Groupon still has me as FranceeFerris. The name of the scam company is Serenity Massage. The amount is $120. They cannot be found as such. I tracked down the massage therapists reputedly to have owned the company. Erin Newman. She has had interest in two other entities: Elements and Blue Thistle. The phone number I find on blue thistle.com only takes messages and no call back.
need help with $600 in groupon and no access to services
Update: the letter I received was a legal court document informing me (as a shareholder) about the existence and the expected resolution of the class action lawsuit.
According to USPS Informed Delivery I have something coming in the mail today regarding this settlement. I was both a consumer and a stockholder, although my investment as a stockholder was probably only around $100.
I am a merger with Groupon and in the last two years I’ve hardly had any calls phone prints. Nothing that I have a greed to such as a credit card required time and visit they could purchase another Groupon right away if my business eligible for this lawsuit the last two years I’ve had no calls or business from running my Groupon with fine print that was not approved by me. I’ve lost so much business because of them. I have no business because of them.
I am a merger with Groupon and in the last two years I’ve hardly had any calls phone prints. Nothing that I have a greed to such as a credit card required time and visit they could purchase another Groupon right away if I eligible my business is for him was slow because of using them.
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