Investors in TaskUs, a digital outsourcing powerhouse, are a step closer to receiving justice — and a hefty payout — after a federal magistrate judge recommended approval of a $17.5 million settlement resolving claims that the company manipulated its Glassdoor ratings to boost investor confidence.
In a detailed report issued Thursday, U.S. Magistrate Judge Gary Stein endorsed the deal, calling it “fair, reasonable, and adequate.” The proposed settlement, he said, offers meaningful relief to the investor class who alleged they were misled by TaskUs’ overly polished portrayal of its workplace culture.
A Case Built on Polished Promises
The lawsuit, which stems from TaskUs’ initial and secondary public offering filings, claimed the company misrepresented its employee satisfaction by pressuring trainees to leave glowing Glassdoor reviews before they experienced the reality of the job.
According to the complaint, the company made it appear that its online ratings “accurately reflected a vibrant and positive workplace,” when in truth, new hires were encouraged to post five-star reviews during training — a period still fueled by “management’s promises of a fun place to work.”
