You are here: Home » International » News » Companies
Business Standard

Uber agrees to pay $3 mn to settle lawsuit with New York drivers over fees

A preliminary settlement was filed on Monday with the federal court in Brooklyn, New York, and requires approval by US District Judge Nicholas Garaufis

Reuters 

Uber will adopt a policy of one share, one vote and has also set a deadline for the closely held company to go public in the next two years	photo: reuters
Photo: Reuters

Technologies Inc [UL] agreed to pay up to $3 million to settle a proposed class-action lawsuit brought on behalf of 2,421 drivers in who accused the ride-sharing company of docking excessive fees from their fares.

A preliminary settlement was filed on Monday with the federal court in Brooklyn, New York, and requires approval by US District Judge

Drivers accused of breach of contract for including sales tax and a "Black Car Fund" fee, which relates to workers' compensation, in fares when calculating service fees, thereby increasing the amounts owed.

They also accused of for allegedly offering guaranteed compensation without disclosing the conditions, such as in an ad telling drivers they could "DRIVE & MAKE $5,000 Guaranteed" in their first month behind the wheel.

The San Francisco-based company denied all allegations, and settled without admitting wrongdoing to avoid the cost and inconvenience of litigation, according to the settlement.

did not immediately respond on Tuesday to requests for comment.

The settlement covers drivers who have used the app to arrange rides in since December 29, 2009, and whose claims are not subject to arbitration.

It follows Uber's agreement to pay more than $80 million to roughly 96,000 drivers in after the company admitted in May to having inadvertently underpaid drivers for two-and-a-half years, court papers show.

Monday's settlement also calls for the dismissal of claims that misclassified drivers who used the app as independent contractors.

Lawyers for the drivers may collect fees equal to as much as one-third of the settlement fund.

The case is Ortega et al v Technologies Inc et al, US District Court, Eastern District of New York, No. 15-07387.

First Published: Wed, January 10 2018. 08:52 IST
RECOMMENDED FOR YOU