Could The Wave Of Lawsuits Destroy Groupon?

Andrew Mason

[credit provider=”AP Photo”]

Groupon is getting increasingly hit by lawsuits that could threaten its business model, Forbes writes.Some of them have to do with the delay on Groupon’s coupons: plenty of states regulate how long a coupon can be redeemed for. A big aspect of Groupon’s draw for merchants is that groupons take some time to expire so they don’t get hit by a wave of new customers all at the same time (or at least not so much).

Other lawsuits, including by Massachusetts’ attorney general, are about Groupon coupons that offer drinks, which is also against the law in several states, apparently.

Whatever the merits of the individual cases, Groupon’s over-arching problem is that it’s one of the fastest-growing, fastest-moving companies in history. That’s always going to leave a few eggs broken. But these kinds of troubles have a way of piling up and incredibly fast growing companies sometimes explode from the stress that comes with breakneck growth.

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