Jon Allison’s Monday Blog
Last week federal Judge Edward Chen of the Northern District of California declined to approve a $100 million dollar settlement in a class-action suit by approximately 385 thousand Uber drivers. The Judge said that the amount was still not enough to be fair and reasonable. The Judge said drivers were potentially owed $700 million in mileage reimbursement, $122 million in tips, $2.4 million in overtime and $30 million in phone reimbursements. Attorneys for the drivers and Uber had agreed on the settlement. The risk for Uber in not settling is it could get hit with a big verdict at trial. There is risk for the drivers as well, however, aside from potentially losing at trial. The Ninth Circuit Court of Appeals is reviewing the decision to certify the class of 385 thousand drivers. If that decision were to be overturned, nearly all of the drivers would have to pursue their claims individually in arbitration. When the same thing happened to Lyft in a similar lawsuit, it increased its proposal from $12.5 million to $27 million and that amount was approved by the judge overseeing that litigation. We’ll see what happens here.
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