Uber Settles Class Action with Drivers Without Rip-off Clauses for $20 Million

March 25, 2019 by

Uber Technologies Inc. has agreed to pay $20 million to nearly 14,000 drivers to settle a class action lawsuit alleging that the ride-hailing company misclassified those drivers as independent contractors. The settlement only includes drivers in Massachusetts and California that did not have arbitration clauses in their contracts with Uber.

In 2015, a California federal court had certified a class of 240,000 California drivers. In 2016, that court was presented with a $100 million settlement that included the Massachusetts drivers. But the court rejected the earlier agreement, taking issue with the resolution of the Private Attorneys General Act claims in the case. That case was later greatly diminished when the Ninth Circuit ruled in September that Uber’s arbitration agreements with class waivers were valid and enforceable, reversing the lower court’s finding to the contrary.

The case is O’Connor et al. v. Uber Technologies Inc. et al., case number 3:13-cv-03826, in the U.S. District Court for the Northern District of California.


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Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

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