Restaurant owners file class action against GrubHub

By Jenie Mallari-Torres | Jan 16, 2019

PHILADELPHIA — Restaurant owners have filed a class action lawsuit against Grubhub Inc., an online and mobile platform, citing alleged breach of contract, conversion and fraud.

Tiffin EPS LLC and Tiffin Mount Airy LLC filed a complaint on behalf of themselves and all others similarly situated on Dec. 31 in the U.S. District Court for the Eastern District of Pennsylvania against Grubhub Inc.

According to the complaint, the plaintiffs allege Tiffin EPS and Tiffin Mount Airy and other similarly situated restaurant owners have suffered tens of millions of dollars in lost profits over the past seven years from being enticed by the defendant to enter into a contract with it to use its platform and advertising services to supposedly increase takeout orders at their respective restaurants, resulting from the fraudulent conduct of the defendant in collecting commission or advertising fees for phone calls that did not result in an order of food or beverage. 

The plaintiffs hold Grubhub Inc. responsible because the defendant allegedly misrepresented taking orders by telephone when in fact all phone calls are rerouted and placed by the restaurants themselves; misrepresented that commissions would only be charged on food and beverage orders placed through; and concealed fraudulent conduct by intentionally disabling the restaurants’ ability to listen to the recordings.

The plaintiffs request a trial by jury and seek judgment against defendant, certification of class action, injunctive relief, compensatory, consequential, and general damages, treble damages, disgorgement and restitution of all earnings, profits, compensation, and benefits received by the defendant, statutory, punitive, and exemplary damages, attorneys’ fees and expenses, interest, and other relief as the court deems just. They are represented by Catherine Pratsinakis and Marie-Theres DiFillippo of Dilworth Paxson LLP in Philadelphia.

The U.S. District Court for the Eastern District of Pennsylvania Case No. is 18-cv-05630.

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