Valorem Sues Groupon on Behalf of Chicago Boat Rentals

CHICAGO, July 18, 2018 /PRNewswire/ -- On Monday, July 16, 2018, Corporate Tailgate Services Inc., dba Chicago Boat Rentals ("CBR"), through its attorney, Stuart Chanen of Valorem Law Group, filed a lawsuit in the Cook County Circuit Court against Chicago-based GROUPON, Inc. ("Groupon").  CBR's Complaint alleges that Groupon engaged in a fraudulent refund scheme in which it took for itself hundreds of thousands of dollars of "refund credits" for purported refunds that were in fact never made to customers.  

The Complaint describes the 5-year CBR-Groupon relationship, in which Groupon sold discounted Groupon Vouchers for CBR's boat rental services.  Under the parties' agreements, Groupon was to keep 20% of the amounts customers paid and then pay the remaining 80% to CBR. The Complaint notes that for some sales, proceeds were correctly divided, but for many others, Groupon fabricated that it had given refunds to customers and then deducted the amounts of those purported refunds from money owed to CBR.  

CBR owner Joe Brown states, "I am a small business owner who completely kept his side of the bargain and expected Groupon to do the same.  Never in a million years did I think Groupon would fabricate refunds to customers.  My business wants to be paid what it is owed." 

The Complaint provides many examples of customers who purportedly received refunds from Groupon, but who in fact either do not exist at all, never purchased a Groupon Voucher for a CBR offering, or purchased such a voucher but never received a refund.  Describing the scheme as both "complex and difficult to uncover," the Complaint alleges that Groupon took concerted steps to cover up the scheme when CBR brought it to Groupon's attention in August and October 2017, including removing certain questionable names and redemption numbers from Groupon's "Dashboard," an online location where Groupon merchants may check the status of specific Groupon vouchers, customers, and/or redemption numbers.    

CBR's Complaint seeks approximately $350,000 in compensatory and $700,000 in punitive damages, as well as attorneys' fees, costs, and pre- and post-judgment interest.  

On Thursday, July 19, 2018, at 11:00 a.m., Stuart Chanen, Valorem Law Group, and CBR representatives will hold a press conference at 607 W. Fulton Market. (The entrance is at the doorway covered by a black canopy/awning, just west of Jefferson Street.)  

The Complaint may be obtained upon request from [email protected]. 

CONTACT INFORMATION: 
Stuart Chanen 
Valorem Law Group                                                                                                                            
312-676-5480

SOURCE Valorem Law Group

Related Links

http://www.valoremlaw.com/