Lyft & Grubhub Face $5 Million Lawsuit Over Deceptive Practices

Lyft, Grubhub Holdings, Inc., and Grubhub, Inc. are facing a class action lawsuit filed by Skye Ruozzi and Alan Arce, alleging that the companies engaged in deceptive practices, including misrepresenting and omitting fees, prices, services, terms, and other aspects of their offers. The plaintiffs also claim that the defendants violated the Rules of the City of New York, Title 6, and committed negligence, fraud, and unjust enrichment.

What Laws Did the Defendants Allegedly Violate?

The defendants are accused of violating several laws, including the Rules of the City of New York, Title 6, the New York General Business Law, and the New York Consumer Protection Act. These laws aim to protect consumers from deceptive business practices and ensure that companies provide accurate and complete information about their products and services.

According to the lawsuit, the defendants allegedly misrepresented and/or omitted information regarding fees, prices, services, terms, and other aspects of their offers and intents to the plaintiffs and those of the same putative class. They are also accused of failing to disclose conditions on free offers, as well as failing to disclose all material exclusions, reservations, limitations, modifications, or conditions.

Who Are the Class Members in This Case?

The class members are those who have been offered goods and services in the form of food delivery services from Defendants Grubhub, and/or those who have purchased goods and services in the form of food delivery services from Defendants Grubhub. The class members are estimated to be in excess of 6 million consumers, if not more, in the state of New York. The class members must be over the age of 18 and competent enough to use the services offered by Defendants.

What Damages Are the Plaintiffs Seeking?

The plaintiffs are seeking damages, including enhanced damages, reasonable attorneys’ fees, and costs. The lawsuit does not specify an exact dollar amount for the damages sought, but it is estimated to be at least five million dollars. The plaintiffs are also seeking interest, attorneys’ fees, and costs associated with the lawsuit.

In addition to monetary damages, the plaintiffs are seeking other relief as deemed just and proper by the court. This may include changes to the defendants’ business practices, such as providing clearer and more accurate information about fees, prices, services, terms, and other aspects of their offers and intents.

What Could Be the Next Steps in the Case?

The next steps in the case may include the defendants responding to the allegations and the court determining whether the case should proceed as a class action. If the case is certified as a class action, the court will then determine whether the defendants are liable for the alleged violations of the law and, if so, what damages should be awarded to the plaintiffs and the class members.

It is also possible that the parties may reach a settlement before the case goes to trial. In such a case, the defendants may agree to pay a certain amount of damages to the plaintiffs and the class members, as well as make changes to their business practices to address the alleged violations of the law.