10 Sep

paidContent – More Bad News For Groupon: Sales Team Files Class-Action Suit

Earlier this week came reports that the daily-deals site, suddenly unpopular with both users and investors, is considering shelving its long-expected IPO. Now comes more bad news—Groupon’s own employees have filed a class-action suit against the company.

In a filing in Chicago federal court this week, former salesperson Ranita Dailey confirmed she will be lead plaintiff on behalf of Groupon employees who seek to recoup overtime that the company allegedly failed to pay. The suit claims that Groupon violated federal and state labor law, and demands three years of back wages and punitive damages for hundreds of employees.

The lawsuit coincides with a rise in negative comments on sites like Glass Door by people claiming to be Groupon employees. They have posted comments like: “a boiler room”; “Immense pressure to hit unrealistic sales goals” and “Sales staff cries all the time.”

Groupon did not immediately respond to requests for comment on the class-action suit.

via paidContent – More Bad News For Groupon: Sales Team Files Class-Action Suit. Obviously can’t speak to validity of this lawsuit but it wouldn’t shock me. What a cruddy business.