Regulators challenged tactics Grubhub employed amid a fierce battle for market share with DoorDash and Uber Eats. Photo: Diego M. Radzinschi/ALM$25M Grubhub Settlement Sheds Light on How Other Gig Economy Firms Can Avoid Regulatory Trouble
“There is no ‘gig platform’ exemption to the laws on the books," Federal Trade Commission Chair Lina Khan said.
December 18, 2024 at 01:40 PM
8 minute read
The $25 million settlement that regulators announced with the food delivery service Grubhub on Tuesday should serve as a cautionary tale for other gig economy businesses tempted to engage in deception in their zeal to become a market leader, a Federal Trade Commission staff attorney says.
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Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
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