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LivingSocial Agrees $4.5M Settlement in Consumer Fraud Class Action Lawsuit

This is a settlement for the lawsuit.

Los Angeles, CA: A $4.5 million settlement has been agreed in the consumer fraud class action lawsuit pending against LivingSocial Inc. The lawsuit alleges that the daily deals company put expiration dates on its coupons. The lawsuit was filed approximately six months after Groupon Inc was hit with a similar lawsuit.

Filed in April 2011by Melissa Forshey, the lawsuit alleged that Forshey was unable to redeem an expired voucher for Jack' Boathouse in Georgetown. Her complaint was later consolidated with five other lawsuit.

Under the agreement LivingSocial will establish a settlement fund to pay out claims, as well as "revise several portions of its business practices,"according to the court documents filed October 19 in U.S. District Court for the District of Columbia. Some of those proposed changes were put in place by LivingSocial well before the settlement.

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Published on Oct-23-12


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