Facts

On July 1, 2021, Jeff Ross, Roxanne Oliveira, and Natasha Scott filed suit in Los Angeles Superior against Panda Restaurant Group Inc., owners of the Panda Express Restaurants.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended that defendants promised to provide a flat $2.95 delivery fee on food deliveries ordered through its mobile app and website, yet falsely and misleadingly misrepresented that fee. Delivery orders were assessed an additional "service charge," noted as a "service fee" in the "Taxes and Fees" section of the receipt, resulting in an extra 10 percent charge than non-delivery customers.

DEFENDANT'S CONTENTIONS: Defendant disagreed with plaintiffs' allegations, denied any liability or wrongdoing, contending that its statements were accurate.

Result

The parties settled with defendant agreeing to provide $900,000 in cash and $500,000 in vouchers, to settle class members' claims. The vouchers will be redeemable for one medium entree through the website or mobile app. Defendant, who stopped charging a service fee on delivery orders placed on its app or website in February 2022, also agreed not to charge service fees for four years.