Groupon Sued by BidMyCrib

Dec 9, 2011 - LegalZoom News Sources
A lawsuit was recently filed against Groupon for not delivering promised deals.

The popular internet daily deal site Groupon is the center of a lawsuit that was filed recently alleging the company altered emails from merchants after both sides had agreed to certain terms.

The lawsuit was filed in a federal court in Chicago, where Groupon is headquartered, by the website BidMyCrib. BidMyCrib is hoping to make the lawsuit a class action suit to also represent other merchant clients of Groupon.

BidMyCrib is a website that gives contractors the ability to bid on residential construction projects. The website alleges that Groupon changed one section of an agreement between the two companies regarding a Groupon promotion, adding a new sentence that altered voucher expiration dates without consulting with the merchant first.

The bidding company contends that Groupon has committed this act with many different merchants.

Groupon raised $700 million in an initial public offering in October. The company sold 35 million shares, which was the biggest initial public offering by a U.S.-based Internet company since Google in 2004.

Groupon has been under fire recently, facing multiple legal issues, including an advertising code suit related to its failure to deliver a promised deal on a product called Ocado, which never existed.