Grubhub agrees to pay $5 million lawsuit settlement over misleading customer fees

Core Viewpoint - Grubhub has agreed to a $5 million settlement in a class action lawsuit regarding misleading customer fees, pending court approval [1] Group 1: Lawsuit Details - The lawsuit, Wang et al. vs. Grubhub Inc., claims that Grubhub misled California customers about delivery fees, service fees, and menu prices, violating consumer protection laws [1] - Any California resident who placed at least one online delivery order with Grubhub or Seamless between January 2019 and January 2026 is eligible to join the class action [2] - Class members will receive a $10 Grubhub credit for use on the website or mobile app, with potential proportional reductions if claims exceed the $5 million fund [2] Group 2: Previous Legal Issues - Grubhub has faced multiple legal challenges for alleged misleading practices, including a 2020 lawsuit for adding restaurants without permission and a 2022 challenge for deceptive business practices [3] - In December 2024, Grubhub paid a $25 million settlement following an FTC investigation that identified "unlawful practices" deceiving consumers, delivery drivers, and restaurants [3] Group 3: Industry Context - Grubhub is not the only company facing legal scrutiny; competitors like DoorDash and Uber Eats have also been targeted in similar lawsuits [4] - Uber Eats settled for $10 million in 2022 for listing restaurants without permission, while DoorDash faced a lawsuit in 2024 for miscalculated fees [4]