Catamorphic, operating under the name LaunchDarkly, has struck a $485,000 settlement in a proposed class action that accused the software startup of systematically failing to pay overtime and violating labor laws in Massachusetts and California. A court filing Wednesday outlined the agreement, which still awaits approval from a Suffolk County Superior Court judge.
The claims, brought under the Fair Labor Standards Act as well as state wage laws, stemmed from allegations of what plaintiffs called “widespread, repeated and consistent” violations.
High-Pressure Quotas at the Heart of Claims
The suit was spearheaded by three former sales employees: John Zorski of Boston, along with Paige Logan and Mohammed Shalabi of San Diego. They alleged that Catamorphic forced them into a “high pressure” sales environment where performance metrics and quotas drove employees to work long hours—often more than 40 hours per week—without proper compensation.
The company allegedly failed to require workers to log their hours and did not keep any formal timekeeping records.
