Uber’s Settlement Flop Reignites Potentially Costly Driver Lawsuits

Aug. 19, 2016, 4:00 AM

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 (O’Connor v. Uber Techs. Inc., N.D. Cal., No. 13-cv-03826, 8/18/16). The settlement sought to sweep under the rug lawsuits with potentially billions of dollars in claims under the law, ...

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