Bloomberg Law
Aug. 19, 2016, 1:20 PM UTC

Uber’s Settlement Flop Reignites Potentially Costly Driver Suits

Bloomberg Media

By Joel Rosenblatt, Bloomberg News

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. The settlement sought to sweep under the rug lawsuits with potentially billions of dollars in claims under the law, which gives workers the right ...

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