Grubhub, a popular food delivery service, has agreed to settle a lawsuit by paying over $3.5 million, following allegations by the Massachusetts Attorney General’s Office of overcharging restaurants beyond the statutory 15% cap amid the COVID-19 pandemic.
In the case of Commonwealth of Massachusetts v. Grubhub Holdings and Grubhub, both parties have stipulated to a settlement ahead of a trial assignment conference scheduled for later this month. Notably, a part of the agreed-upon settlement will require Grubhub to pay over $3.5 million to the affected restaurants, along with an addition of $125,000 to the Commonwealth.
A statement issued by Massachusetts Attorney General Andrea Campbell highlighted the alleged exploitative behavior by Grubhub towards restaurants during a public health crisis that left much of the industry in devastation. As per the settlement, the onus lies on Grubhub for unlawfully overcharging and taking advantage of these establishments during a critical period.
Details of the case and the settlement, including the Attorney General’s statement, can be read in full here.