LAS VEGAS, Nev. (FOX5) – Several Las Vegas restaurants have filed a class-action lawsuit against Uber Eats after reports of imposter restaurants.
Following FOX5′s initial reports on imposter pages, Uber paused onboarding any new restaurants and established a contact for affected restaurants.
The lawsuit, filed in Clark County on Wednesday, accused Uber Eats and several other defendants of fraud, conversion, civil RICO, racketeering, and negligence. The restaurants responsible for the lawsuit include Esther’s Kitchen, BabyStacks Cafe, Rebel Kitchen, Manizza’s Pizza, Timeless Cuisine, and Gaetano’s Ristorante.
The Las Vegas Review-Journal was the first to report on the lawsuit.
“Defendants failed or refused to perform due diligence when applicants agreed to contract with Uber Eats. Uber Eats would not ask for even rudimentary identification to verify if an applicant was the actual business owner of the listed restaurant, prior to contracting and putting them on the app,” the lawsuit reads.
Restaurants claimed that Uber Eats neglected to verify the identity of any restaurant using the app, and would often only ask for verification from a restaurant after it had submitted a complaint about imposters.
“In some instances, Uber would temporarily remove the fraudulent entity from the app, but Uber would do nothing to prevent perpetrators from again adding the names of the same legitimate benefits a short time later.
At one point, the lawsuit claims, one imposter was taking orders under the names of 14 different restaurants throughout Clark County.
Additionally, it is alleged that Uber still accepted a 30% cut of all fraudulent payments, and drivers still received money despite knowing the restaurants they were picking up food from were not the actual restaurants.
FOX5 has reached out to several restaurants involved in the lawsuit, as well as Uber Eats, for comment on the lawsuit.
At time of publication, a hearing has not been set for this case.
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