Class Action Repeat: Groupon Sued by Its Own Employees

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Things aren’t going well for Groupon these days. Not only is the daily deals business facing a downturn with Yelp cutting back the frequency of its deal service and Facebook dropping its service altogether, but now Groupon is facing its second class action lawsuit in two months—and this one comes from its own employees.

A lawsuit was filed in Chicago last week by former Groupon salesperson Ranita Dailey that claims that the company owes three years of unpaid overtime to staff, and is therefore in breach of federal and state labor laws.

The lawsuit comes at a bad time for the company, which reportedly lost 50% of its traffic last month and is already facing another class action suit over its use of keyword advertising, filed last month in California.

Groupon had been expected to announce its long-rumored IPO at some point this month, but is now rumored to be considering delaying the announcement, if not abandoning IPO plans altogether. Groupon has yet to comment on either the new lawsuit, or rumors surrounding plans to go public.

(MORE: Groupon Posts $103 Million Loss in Last 3 Months)

Graeme McMillan is a reporter at TIME. Find him on Twitter at @Graemem or on Facebook at Facebook/Graeme.McMillan. You can also continue the discussion on TIME’s Facebook page and on Twitter at @TIME.

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