Uber Eats hit with class action lawsuit in Nevada over ‘imposter’ restaurants

Greg Haas
2 min read
0
In this article:

LAS VEGAS (KLAS) — A class action lawsuit filed against Uber Eats, delivery drivers and “imposter” restaurants includes racketeering allegations that dishonest operations have been going on for years.

Four restaurant companies — Esther’s Kitchen, Babystacks Cafe, Manizza’s Pizza and Gaetano’s Ristorante — are suing to recover damages lost to companies that made and sold food using their business names, all with the ongoing cooperation of Uber Eats and their delivery drivers, according to the lawsuit. Uber Eats pocketed 30% on every transaction and failed to investigate whether the imposter restaurants were who the said they were, the lawsuit alleges.

This week, 8 News Now reported how the owner of Manizza’s Pizza caught another business in the act impersonating her brand to fill an order.

Uber Eats said they have paused all new applications for virtual kitchens in the Las Vegas valley and is now requiring new businesses to provide business licenses and proof of a physical address.

The website for Esther’s Kitchen in the Arts District.
The website for Esther’s Kitchen in the Arts District.

The lawsuit estimates that at least 1,000 restaurants in the valley have been victimized, and seeks damages in excess of $15,0000 for each of those companies. Allegations of additional damages are also detailed in the lawsuit, which was filed Wednesday in Clark County District Court.

Plaintiffs represented by Bighorn Law, a North Las Vegas law firm, argue that Uber Eats allows virtual kitchens to impersonate restaurants — deliberately.

“The Uber Defendants set the app up in this manner intentionally to harm small restraint businesses, including Plaintiffs, in an effort to take up more of the local restaurant market share as these local restaurants were pushed out due to the impact of this fraud and conversion,” the lawsuit alleges.

Manizza’s Pizza (KLAS)
Manizza’s Pizza (KLAS)

The setup “resulted in parties creating false identities that co-opted known restaurants brands and identities … and allowed unknown individuals to siphon business for themselves using the goodwill created by the actual business owners,” according to the lawsuit.

The drivers are complicit because they knew the food was not coming from the actual restaurant listed in the app, the lawsuit argues.

The lawsuit names Uber Technologies, Inc., Rasier, LLC, Uber Eats territory lead Berchman Melancon, two Uber Eats drivers identified only as Nick and Karina, and additional people and companies yet to be identified.

Allegations include fraud, conversion, defamation and negligence, arguing that the actions qualify as racketeering under Nevada’s RICO statutes. Racketeering laws were widely used to combat organized crime activities.

For the latest news, weather, sports, and streaming video, head to Queen City News.

Advertisement

Recommended Stories

  • Andreessen Horowitz partner says Google is an ‘amazing example’ of employing people in ‘BS jobs’: ‘Half the white-collar staff probably does no real work’

    “Those people aren’t just being useless (and being coddled to think useless jobs actually matter—they don’t), but they are also taking money away from the rest of the workforce’s retirement programs.”

  • Exxon to Move Tech Center to Houston, Shut New Jersey Campus

    (Bloomberg) -- Exxon Mobil Corp. plans to establish a single North American research and technology hub at its Houston headquarters, resulting in the closure of campuses in Clinton, New Jersey, and Sarnia in Ontario. Most Read from BloombergTrump Judge Indefinitely Postpones Documents Case TrialIsrael Says a Cease-Fire Plan Backed by Hamas Falls ShortOne Out of Every 24 New York City Residents Is Now a MillionaireEinhorn Says Markets Are ‘Broken.’ Here’s What Data ShowsThe closures will affect a

  • I'm Retired. How Much Should I Keep in Stocks, Bonds and Cash?

    There are many different approaches and strategies for retirement investing that might appeal to you. But how do you tell if a certain strategy works for your situation? When evaluating different approaches, consider how each strategy is put together and … Continue reading → The post Here's How Much to Keep in Stocks, Bonds and Cash in Retirement appeared first on SmartAsset Blog.

  • Can I Retire at 62 With $500k in a Roth IRA and $2,000 per Month Between Pension and Social Security?

    Ultimately, whether you have enough to retire depends on your costs and your income. If you can live on a tight budget with the right circumstances, $2,000 a month from a pension and Social Security, combined with the right strategy with $500,000 in your Roth IRA may be enough to sustain you throughout your retirement. […] The post I Have $500k in a Roth IRA, and Will Receive a Combined $2,000 a Month From a Pension and Social Security. Can I Retire at 62? appeared first on SmartReads by SmartAs

  • EU tariffs on Chinese EVs could backfire, hobble Green Deal, BMW CEO says

    BMW's CEO on Wednesday warned against imposing EU import duties on electric vehicles from Chinese automakers, saying it could upend the bloc's Green Deal industrial plan and harm German automakers which import cars made in China. The European Commission, which oversees trade policy in the 27-nation European Union, launched an investigation in October into whether fully-electric cars manufactured in China were receiving distortive subsidies and warranted extra tariffs.

  • Explainer-Shell's Singapore refinery sale and its market significance

    Oil giant Shell said on Wednesday that it has agreed to sell its Bukom refinery in Singapore - one of the world's largest oil refining and trading centres - to a joint venture of Indonesian chemicals firm PT Chandra Asri and global trading house Glencore, culminating a process that began last year. WHY IS SHELL SELLING ITS SINGAPORE "CROWN JEWEL" REFINERY?

  • Portillo’s swings to profit in Q1 2024

    The restaurant chain’s total revenue saw a 6.3% increase year-on-year, reaching $165.8m in the quarter.

  • Construction Slowdown Slams Building Supply Shares

    Builders FirstSource, one of the hottest stocks of the past year, was hammered after reporting a 22.5% decline in first-quarter profit, a sign that high borrowing costs are beginning to slow residential construction. + Shares of the building products supplier have stood out among chip makers and tech firms atop the S&P 500 despite the highest interest rates in a generation. JELD-WEN Holding shares fared even worse after the window and door maker swung to a quarterly loss and cut its financial outlook.

  • Explainer-The latest investigation into the Boeing 787

    The U.S. FAA has opened another investigation into Boeing, which was already facing probes related to a Jan. 5 panel blowout on a 737 MAX. The FAA wants to know if Boeing completed inspections to confirm adequate bonding and electrical grounding where wings join the fuselage on certain 787 Dreamliner airplanes at its factory in South Carolina. Boeing informed the FAA that an employee at the South Carolina plant found irregularities in a 787 test - and said in an email from a company vice president that the planemaker "learned that several people had been violating company policies by not performing a required test, but recording the work as having been completed."

  • The accounting firm that Trump hired for his media firm’s IPO was caught copy-and-pasting previous audits and is now banned forever

    The firm and its founder have agreed to pay a combined $12 million in penalties and to a permanent suspension.