Proposed Class Action Accuses Popular Restaurants of Illegally Fixing Tip Rates

In Diamond et al. v. Darden Restaurants, Inc. et al., plaintiff Ted Diamond filed a proposed class action suit against the owners of several popular restaurant chains, such as Red Lobster, Olive Garden, Applebee’s, and Ruby Tuesday, accusing the restaurants of fixing prices at locations in New York City’s Times Square for automatic gratuities and deceiving customers about their tipping policies.  In his suit, plaintiff alleges that the restaurants conspired to illegally charge automatic gratuities for parties of seven or fewer guests and excessive automatic gratuities for parties of any size.  The suit seeks statutory, compensatory, and punitive damages, as well as treble damages and fees and an order finding the restaurants violated New York’s consumer protection laws.

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