Uber settlement giving drivers $1 each doesn't fly with judge
Uber Technologies failed to persuade a judge to approve a settlement offering 1.6 million California drivers an average of $1.08 apiece to dispense with alleged labor-code violations that their lawyer claimed might have been worth billions of dollars.
Los Angeles Superior Court Judge Maren Nelson issued a tentative ruling rejecting a deal aimed at resolving one of more than a dozen U.S. lawsuits challenging the company's contractor-based business model.
The judge said there's merit to objections that the $7.75 million accord most of which would go to state coffers, administrative costs and lawyer fees shortchanges drivers who sued seeking the protections and benefits of employees. Nelson also said the settlement provides too broad a release of liability for Uber from labor-code claims.
"I need some analysis why it is fair and adequate," she said during a hearing Friday.
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