The lawsuit claimed Groupon was not lawfully disclosing information on deals, including expiration dates and other restrictions, the Chicago Tribune reported Saturday.
The firm is offering refunds on Groupons purchased between Nov. 1, 2008, and Dec. 1, 2011, the newspaper said. It has put $8.5 million in an account to cover the expenses of the settlement, which has yet to be approved by the court.
Court approval is not expected until after a July 20.hearing on the settlement in San Diego. Groupon, however, began informing subscribers of the refund program on Friday.
Groupon is not initially offering cash refunds, but instead will hand out vouchers redeemable at the business that was part of the original Groupon deal.
If that business is out of business or will not redeem the voucher, however, Groupon will then offer the subscriber a refund check, the newspaper said.