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Uber’s Settlement Flop Reignites Potentially Costly Driver Suits

  • Ruling called ‘great outcome’ by lawyer seeking class action
  • ‘Bounty Hunter’ claims could add up to billions of dollars
Bloomberg business news

Uber's $100M Driver Settlement Rejected

The rejection of a $100 million settlement with drivers comes with plenty of silver linings for Uber Technologies Inc. The gray cloud for the ride-hailing company is that a dozen or so lawsuits that would have been silenced may now roll back in.

A San Francisco federal judge concluded the deal was unfair in large part because it undervalued potential labor code violations under California’s unique bounty-hunter law, known as PAGA. The settlement sought to sweep under the rug lawsuits with potentially billions of dollars in claims under the law, which gives workers the right to step into the shoes of the state labor secretary to bring enforcement actions.