Local Law Firms Home > Business Law News > Groupon Inc. Faces Lawsuit From Merchant
Groupon, a Chicago-based company, raised $700 million in an original public offering last month, selling 35 million shares in the largest IPO by a U.S. Internet business since Google Inc.’s in 2004. Created in 2008, the business sells daily, inexpensive bargains for local merchants including hotels, restaurants, retail shops, and services.
Groupon deals with its merchant-clients by e-mail and transmits its merchant contractss in the body of e-mailed messages, according to the grievance by BidMyCrib, a website that permits contractors to make offers on residential construction developments. The business later goes into those e-mails and changes the content, according to the grievance.
Groupon modified at least one portion of the merchant contract with BidMyCrib by implementing an additional sentence related to voucher expiration dates to the previously agreed-upon terms, according to the grievance. A spokesperson for Groupon, Julie Mossler, declined to comment on the case.