A class action alleges Shopify reneged on a deal it offered to some employees who were laid off in a recent round of cuts.
According to the class action, some of the payment solutions company’s employees who were laid off at the beginning of May were presented with substantial severance packages to which they would have been entitled if they signed the agreement within a few days. days later.
However, once the workers signed the agreements — even when it was done before the stated deadline — Shopify reportedly told them that they would instead receive significantly less money than originally offered.
Class action plaintiff Iain Russell said he accepted $88,000 before Shopify offered him $44,000 instead. He added that he was told that if he did not accept the $44,000 offer, he would instead receive $36,000.
Mr. Russell’s attorney, Lior Samfiru, alleges that Shopify’s actions constitute a breach of contract and seeks $80 million in damages and $50 million in punitive, aggravated, and exemplary damages.
The case has yet to receive court certification. Shopify, which did not respond to a request for comment, cut its workforce by 20% earlier this month and 10% last year.
Company in this story: (TSX:SHOP)
