When is $8.5 million not $8.5 million?
A person might ask “when is $8.5 million not really $8.5 million?” In one case, the answer is when you have to factor in over $2 million for the lawyers.
Groupon just wrapped up a lawsuit in which they will pay $8.5 million to settle a class action with individuals who purchased expired Groupons. Prior to the lawsuit, if a customer had a problem with an expired Groupon, the company would refund the full purchase amount. Now, if an individual purchased an expired Groupon during the class period, they will instead have to fill out a form for the class action settlement, and wait months (or possibly even years) to see what may only end up being a partial refund.
Because of the initial availability of refunds, the individuals who purchased expired Groupons were no worse off beforehand. In fact, one might argue that they are worse off now because they have an added hassle AND have to pay over $2 million in legal fees out of the settlement.
For more information on this wacky case, click here.
