Judge did not approve Uber lawsuit settlement

844 Views 7 Replies 6 Participants Last post by Bill Feit, Aug 3, 2016

Bill Feit

Discussion Starter · Jul 9, 2016

Here is some interesting facts regarding Uber lawsuites. Judge has asked for additional justification in $100 million settelment and wants it by 7/17.

Uber has been hit disproportionately hard in court, but that's hardly surprising, Sundararajan said. Part of the problem is Uber's lukewarm relationship with its drivers - which the company is trying to change with perks like its recently launched quasi union in New York City. But the courtroom showdowns could become an issue for 6-year-old Uber as it continues fundraising, said Paul Boyd, managing partner at ClearPath Capital Partners. Even Uber, with its breakneck growth and massive war chest, isn't immune to the power a lawsuit has to taint a company's image.

"It will make investors question," Boyd said. So far, the company hasn't faced any devastating legal losses. Uber dodged what could have been a major blow in April when it reached a settlement worth up to $100 million to resolve claims that its drivers were entitled to employee benefits such as overtime pay and reimbursement for expenses. (See Above Story) The deal, which is awaiting approval from a San Francisco federal judge, allows the company to avoid a high-profile trial and the expense of reclassifying its drivers as employees - a major win.

The ride-booking platform announced public settlements in at least six cases during the past year, agreeing to shell out up to $163 million. Those deals seem to represent a shift for the company, which originally made a show of fighting litigation tooth and nail, said Joshua Davis, associate dean for academic affairs at the University of San Francisco School of Law. "One possibility is that you're seeing a kind of maturing of the company in a way," he said. "That it is going from sort of a cowboy mentality, if you will, to more of the attitude of an established company."

Uber also pays a massive in-house legal team. A LinkedIn search turned up nearly 50 members around the world, and the company's website lists 24 openings in its legal department. Some lawsuits are backed by Uber's enemies in the taxi industry, who cry foul because Uber doesn't adhere to their regulations. Others target Uber's driver background checks - some argue they are too lax; others claim they dig too deeply. The company also has been accused of failing to protect female passengers from being sexually assaulted by drivers, leaving driver information vulnerable to a data breach, and refusing to accommodate blind passengers' service dogs.

Despite the pending settlement for up to $100 million, the debate over whether Uber drivers should be employees or independent contractors is far from over. Lawyers have filed a string of follow-on suits, and the issue constantly crops up in seemingly unrelated cases.

Some of this litigation has the potential to do serious damage. An antitrust suit in New York, which accuses Uber of illegally fixing the prices its drivers charge instead of allowing them to compete with each other, could be worth more than $1 billion and seeks to upend Uber's pricing model, Davis said. Depending on how the court receives the case, "Uber could be anywhere between just fine and in a whole lot of trouble," he said.

My Take: This is the best and most comprehensive article I've read on Uber's ongoing legal battles. The numbers speak for themselves - 70 lawsuits in federal courts pending, with another 60 already settled. That doesn't count state lawsuits. Yes, Uber is a big target, with deep pockets. But, as the article's author points out, Uber often acts like a bully, and annoys a lot of people. This is the nature of disruption. Only time will tell whether Uber's approach worked.

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johncarlsbad

· #2 · Jul 9, 2016

The judge should not approve the latest settlement offer as it is a sham put together by greedy self serving attorneys and really does little to nothing to compensate drivers or change Uber's overall operating tactics.

As far as Uber's tactics changing all I can see is the drivers no longer have to accept 90 per cent of their calls, which means under the settlement we no longer have to accept ridiculous 20 min away pings for fear of being deactivated

But even as Uber attorneys argue for settlement, Uber will not agree to let drivers opt out of pool requests and even goes as far as financially penalizing drivers by timeouts for not accepting pool rides during high demand times. Rides that are at a discounted rate that the drivers never agreed to perform and the Uber makes a greater percentage profit on

As far as I can see there is very little transparency built into the settlement as to when and how Uber can deactivate a partner and for what cause

And finally when it comes to the financial terms of the settlement, it is totally inadequate, and completely in Uber's favor. If I was caught and convicted of selling crack, and the government estimated my earnings to be ten billion dollars from the sell of crack, they would move to seize ten billion dollars they would not accept a 100 million dollar settlement. Why should Uber get to keep their ill gotten gains?

To make the settlement fair to all drivers, they should calculate by each driver the number of rides times Uber's booking fee per ride and then add up all commissions paid by the driver, and then pay a percentage of that total to each driver. I do not feel anything less than a least 50 per cent of the total would be fair compensation to the drivers and really why should Uber be rewarded by getting to keep its illegal profits?

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Hossain

· #3 · Aug 1, 2016

Hi is it true that according to the lawsuit satelment, we are allowed to have signs saying: Tips are not necessary but appriciatd.
I got a message from Uber Rating that I sold not ask for cash tips.

Any suggestions or comments

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johncarlsbad

· #4 · Aug 1, 2016

Hossain said:
Hi is it true that according to the lawsuit satelment, we are allowed to have signs saying: Tips are not necessary but appriciatd.
I got a message from Uber Rating that I sold not ask for cash tips.

Any suggestions or comments

Yes email them and tell them as soon as they add to option to the App, or raise rates so we can make at least minimum wage you will remove the legal as of now sign. Until then they can go pound sand

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UberReallySucks

· #5 · Aug 1, 2016

johncarlsbad said:
Yes email them and tell them as soon as they add to option to the App, or raise rates so we can make at least minimum wage you will remove the legal as of now sign. Until then they can go pound sand

And save that email. It may come in handy one day!

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observer

· #6 · Aug 2, 2016

http://www.bloomberg.com/news/artic...ge-says-it-s-ready-to-ditch-driver-settlement

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Sharkb8

· #7 · Aug 2, 2016

Thanks for posting the Bloomberg article Observer. Will Judge Chen fold his cards & give the win to Uber? I don't think so.

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Bill Feit

Discussion Starter · #8 · Aug 3, 2016

Hossain said:
Hi is it true that according to the lawsuit satelment, we are allowed to have signs saying: Tips are not necessary but appriciatd.
I got a message from Uber Rating that I sold not ask for cash tips.

Any suggestions or comments

Not sure if you read the posting from the moderator below but here is a paragraph that covers your question: The proposed settlement allows drivers to solicit tips and allots payouts based on the miles they've driven. It also provides non-monetary benefits including protection against being terminated without reason.

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