For New York independent drivers and their passengers, the birth of local Uber rival Juno last year seemed like good news. Many drivers worked for both companies, doubling their business. Many also had claim to Juno stock units that, it turned out, the company would never — and could never — distribute.
So when Juno sold itself to Gett for $200 million last month, the Independent Drivers Guild (IDG; an organization representing Uber drivers in New York) filed a complaint to the Federal Trade Commission over the misleading stock program.
The program promised to distribute restricted stock units to independent contractors driving for the company and allow them to share in the fruits of an eventual sale or initial public offering. But the guild’s complaint, filed Tuesday (May 16), said the legality of the program had been questionable from the start.
“It is clear that Juno misled drivers on both the company’s intention to share a stake with drivers and the value of the shares program,” Ryan Price, the executive director of the IDG, wrote in the letter.
Prior to the sudden sale, Juno was breaking even and had been for months, a source familiar with Juno’s finances told Bloomberg. But investors didn’t […]