Grubhub Settles Overcharging Lawsuit for $3.5 Million

The company will pay impacted restaurants and the state after a judge ruled it violated a fee cap during the COVID-19 pandemic.

Grubhub has agreed to pay $3.5 million to settle a lawsuit accusing it of overcharging restaurants during the COVID-19 pandemic.
The lawsuit, filed by Massachusetts' Attorney General's office in 2021, alleged that Grubhub charged fees exceeding the 15% cap imposed by the state during the public health emergency.
Grubhub will pay over $3.5 million to impacted restaurants and $125,000 to the state.
Grubhub argued that it complied with the law by lowering commissions to 15% but that separate processing fees for credit card transactions of around 3% were not covered by the statute.
The case was settled after Suffolk Superior Court Judge Robert Gordon ruled that the law broadly covered all fees.