The Kehoe Law Firm proudly announces that on January 5, 2024, U.S. District Judge John P. Cronan denied in significant part a motion to dismiss filed by digital solutions provider TaskUs and certain of its executives over alleged false statements they made regarding the company’s turnover and Glassdoor ratings.

U.S. District Judge John P. Cronan on Friday issued an opinion and order stating that plaintiffs Humberto Lozada and the Oklahoma Firefighters Pension and Retirement System that the IPO and SPO filings contained misleading statements about TaskUs’ Glassdoor ratings and that plaintiffs have adequately pleaded that TaskUs misled investors to believe its Glassdoor ratings “accurately reflected the company’s positive workplace culture.”

According to the suit, the ratings were the result of a policy at TaskUs requiring brand new employees to submit a review while still in training and “were still excited about [TaskUs] based on management’s promises that it was a ‘fun place to work,’ and had not yet experienced the disappointing reality of working at TaskUs.”

The judge said that while an individual, “after embarking on a substantial effort,” could figure out that new employees did all the ratings, it does not mean that such information or data was “feasibly digestible.”

“A reasonable investor cannot be expected to have the ability to design or obtain a program to collect information from thousands of different Glassdoor ratings and associated rater profiles,” the order stated. “More fundamentally, public data on the raters’ tenures would not have revealed the alleged reason so many reviews came from new employees: the existence of a policy at TaskUs requiring new employees to submit reviews.”

The case is Lozada v. TaskUs Inc. et al., 1:22-cv-01479, in the U.S. District Court for the Southern District of New York.

For more information about Kehoe Law Firm and its involvement in this matter, please contact Michael Yarnoff at [email protected] or call (215) 792-6676.