Joint user selection and precoding in multiuser MIMO settings can be interpreted as group sparse recovery in linear models. In this problem, a signal with group sparsity is to be reconstructed from an underdetermined system of equations. This paper utilizes this equivalent interpretation and develops a computationally tractable algorithm based on the method of group LASSO. Compared to the state of the art, the proposed scheme shows performance enhancements in two different respects: higher achievable sum-rate and lower interference at the non-selected user terminals.