Groupon customers are worse off under the proposed class action settlement in a case over expired coupons, according to Ted Frank of the Center for Class Action Fairness. Prior to the litigation, Groupon’s customer service department gave immediate full cash refunds to customers who called to complain about the company’s coupons. But claims arising during the class period–primarily the year 2010–will be referred to the class action settlement Web site. “[T]hey can fill out a claim form; after several months (and perhaps years), the class action settlement administrator will give the class member a pro rata share of the settlement fund–which, though the publicity says is $8.5 million, less than $6 million of it will be likely available to the class,” Frank wrote. “In other words, the class action attorneys have negotiated a settlement that makes their clients–who had suffered no damages because of the availability of refunds–worse off, and are asking for millions of dollars [in legal fees] for their efforts,” Frank said. He has filed an objection to the settlement. Source: Ted Frank, “Groupon class action settlement: when is $8.5 million not $8.5 million?,” point of law, July 27, 2012
Maureen Martin, a former legal fellow at The Heartland Institute, passed away on February 5, 2013.
