It doesn’t look great for the proposed $84 million settlement the lawsuit filed against ride-share giant Uber by the hundreds of thousands of its drivers, after the judge overseeing the case said last Thursday the settlement gives him “serious concerns.”
In 2013, Uber drivers filed a massive class-action suit against the $62 billion company, alleging Uber was withholding tips and classifying drivers as independent contracts while treating them as employees. A few weeks ago, not long before the possibly momentous trial was to begin — the result of which could have threatened the very basis for how workers are classified in the Silicon Valley gig economy — Uber reached a settlement with the drivers’ attorney, Shannon Liss-Riordan.
Under the terms, Uber drivers could collect tips but will remain contractors. On top of that, drivers could not file further lawsuits challenging their employment status and certain work conditions. In return, drivers would receive a settlement check ranging from between $25 to $218 — while Liss-Riordan’s firm would pocket $25 million. If Uber went public, the settlement would increase from $84 million to $100 million.
That led to a revolt, with both the lead plaintiff and hundreds of drivers asking Judge Edward Chen to reject the settlement and remove Liss-Riordan as attorney, and other attorneys, filing separate actions, guessing that the damages in the case could be worth more than $1 billion. Read more….
- Shannon Liss-Riordan reached a settlement with Uber.