A proposed consumer protection class action lawsuit was filed on Monday in a New York federal court against the premium job site TheLadders, according to BusinessInsider. The lawsuit claims that the company promises its users access to high-paying jobs that do not exist.
The lawsuit was filed by the firm of Bursor & Fisher on behalf of plaintiff Barbara Ward. An entire copy of the lawsuit was posted on the blog, Ask The Headhunter, which is run by recruiting consultant Nick Corcodilos.
The suit alleges:
“From its inception until September, 2011, TheLadders scammed its customers into paying for its job board service by misrepresenting itself to be ‘a premium job site for only $100k+ jobs, and only $100k+ talent.’ In fact, TheLadders sold access to purported ‘$100k+’ job listings that (1) did not exist, (2) did not pay $100k+, and/or (3) were not authorized to be posted on TheLadders by the employers.”
“Unlike other online job boards which are free to join, TheLadders charged a premium subscription fee to members for ‘hand-screen[ing] every job post and recruiter so you only see real, open $100k+ jobs in your area.’ In reality, however, its job postings were not hand-screened. They were ‘scraped’ from the Internet without authorization from employers or recruiters, and the employment opportunities were not for ‘real, open $100k+ jobs.’ Moreover, TheLadders had no process in place to ensure that these posted positions ever truly existed, remained open, or that they met its minimum advertised salary criteria of $100k+.”
The CEO of TheLadders, Alex Douzet, sent the following statement to BusinessInsider:
“We believe the allegations set forth in this complaint to be false. In fact, our employees review job listings before they are posted to our site, as has always been our protocol. Additionally, we have a team of specialists who review resumes and provide individualized critiques. This complaint lacks merit, and we fully intend to take the necessary legal steps to dispose of it quickly. In the interim, we remain steadfast in our commitment to providing the best job-matching experience for employers and job seekers, while serving as the fastest-growing source for career-driven professionals.”
The company was founded in 2003 by Douzet, Andrew Koch, and Marc Cenedella. In order to acquire a premium membership, users have to pay $25 per month. Recruiters can use the site for free. Other claims in the lawsuit include breach of contract, money received, breach of the implied covenant of good faith and fair dealing, unjust enrichment, and violation of the Arkansas Deceptive and Unconscionable Trade Practices Act.