Australian fast-food chain Domino’s Pizza Enterprises said on Tuesday it would defend itself against a class-action lawsuit filed over employee pay, sending its shares as much as 5.1% lower.
The suit, filed by law firm Phi Finney McDonald in the Federal Court of Australia, alleges that Domino’s misled franchisees by telling them not to pay delivery drivers and in-store workers wages as per industry standards.
The suit was filed on behalf of Australian employees who were employed as delivery drivers or in-store workers between June 24, 2013 and January 23, 2018, the company said in a statement.
Therium Litigation Finance Atlas AFP IC is providing litigation funding in relation to the proceeding, Domino’s said.
Domino’s shares marked their biggest intraday percentage fall in nearly a month on Tuesday, with the broader market flat.