Groupon IPO Looking Far Off... Really Far Off
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Groupon may never get an IPO.
According to reports Friday afternoon, Groupon employees have filed a class action suit in a Chicago federal court this week seeking to recoup overtime pay the company has allegedly failed to pay.
Claiming Groupon violated state and federal labor law, employees are seeking up to three years of back wages and punitive damages.
The suit comes as Groupon is both gearing up for potential IPO, which it has delayed, and seeking to maintain market share, which has fallen. According to recent data from Experian Hitwise, Groupon lost 50 percent of traffic in August from its June peak, whereas competitor LivingSocial saw a 27 percent increase.
Groupon also has yet to make a profit. The company reported a loss of $103 million on revs of $787 million.
Finally, Google (Nasdaq: GOOG), which previously offered to buy Groupon in a $6 billion deal, is planning to expand its own daily deals site to five new cities, according to paidcontent.org.
According to reports Friday afternoon, Groupon employees have filed a class action suit in a Chicago federal court this week seeking to recoup overtime pay the company has allegedly failed to pay.
Claiming Groupon violated state and federal labor law, employees are seeking up to three years of back wages and punitive damages.
The suit comes as Groupon is both gearing up for potential IPO, which it has delayed, and seeking to maintain market share, which has fallen. According to recent data from Experian Hitwise, Groupon lost 50 percent of traffic in August from its June peak, whereas competitor LivingSocial saw a 27 percent increase.
Groupon also has yet to make a profit. The company reported a loss of $103 million on revs of $787 million.
Finally, Google (Nasdaq: GOOG), which previously offered to buy Groupon in a $6 billion deal, is planning to expand its own daily deals site to five new cities, according to paidcontent.org.
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