A law firm pursuing a class-action suit against Groupon over expired deal purchases says the online coupon sharing site has agreed to a settlement of more than $500,000.
The Toronto-based law firm Sack Goldblatt Mitchell has posted a notice to the website grouponclassaction.ca, outlining the terms of the settlement and how affected Groupon customers can submit claims.
The settlement must still be approved by the Ontario Superior Court, with a hearing scheduled for July 2 in Toronto.
Groupon offers "daily deals," which give users discounts on products and services.
But those deals have expiry dates, and the lawsuit relates to cases in which Groupon deals expired and customers could not redeem the expired vouchers for the original purchase price.
For example, if a customer purchases a voucher that offers $40 in services for the discounted price of $25, they should be able to redeem the voucher for their original purchase price of $25 even after the deal expires.
The settlement is for customers across Canada with vouchers that expired before March 8 of this year, and who have attempted to redeem their expired voucher but have been unable to do so or were only able to redeem the voucher for a portion of what they originally paid.
There had been two similar lawsuits filed in both Alberta and Ontario. Under the settlement, the Alberta lawsuit will be discontinued and the Ontario lawsuit will cover customers across Canada, according to the law firm's notice.
The agreement establishes a settlement fund of $535,000.
The fund will be used to pay $235,000 in legal costs, with the rest set aside to pay claims by affected customers.
Groupon could not be immediately reached for comment.