TheLadders' Premium Job Board Is A 'Scam,' New Lawsuit Alleges
Premium job site TheLadders is being sued in a New York federal court on allegations that the company promises users access to exclusive high-paying jobs that don't actually exist.
Law firm Bursor & Fisher filed the proposed consumer protection class action suit on Monday on behalf of plaintiff Barbara Ward. A complete copy of the lawsuit was posted by recruiting consultant Nick Corcodilos, who often writes about TheLadders on his blog, Ask The Headhunter.The suit alleges:
"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+."
Business Insider reached out to TheLadders for comment and received the statement below from CEO Alex Douzet:
TheLadders was founded in 2003 by Douzet, Andrew Koch, and Marc Cenedella and advertised itself as a job board that caters to job seekers looking for six-figure jobs. To get a premium membership, users have to pay a subscription fee of $25 a month, promising them access to "hand-screened" jobs. The site is also accessible to recruiters for a fee.
Other specific counts alleged in the proposed class action include breach of contract, money received, breach of the implied covenant of good faith and fair dealing, violation of the Arkansas Deceptive and Unconscionable Trade Practices Act, and unjust enrichment.
The lawsuit doesn't specify the amount of money being sought by the plaintiffs. However, it does request that punitive damages and all money collected through these premium subscriptions be returned to customers.
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