Three Juno drivers have filed a federal class action lawsuit against New York-based ride-hail service Juno. The drivers are filing for breach of contract, false advertising, and securities fraud.
Juno Drivers Misled by Equity Program
The Juno drivers allege the company lured away high-performing drivers from competing companies Uber and Lyft with the promise of equity in the company. In April, when Juno was acquired by New York-based Gett, the equity program was dissolved.
As part of the acquisition deal, drivers were informed that those who had Juno shares were to be cashed out. As reported by Recode, drivers were receiving on average around $100 – regardless of how many shares they held. One driver reportedly had more than 6,000 shares.
The suit filed alleges that Juno used the equity program to lure drivers to the company with intentions to sell the company when an offer came its way. In addition to the equity program, Juno paid drivers $50 to be on the platform, even before drivers were carrying riders. When the company launched, riders were given deep discounts and drivers were only charged 10 percent commission. The result was an unsustainable business model.
In response to the suit from the Juno drivers, the company states that it was considering changes to the equity program prior to the acquisition by Gett. Gett acquired Juno for $200 million, including the company’s assets and its founding team.
Have You Been a Victim of Securities Fraud?
If you are the victim of investment fraud or believe you have been scammed, you may have certain legal rights that require your immediate attention.
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If you are looking for a securities fraud lawyer to review your rights and options, the securities lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from companies for their wrongful actions.
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