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San Francisco judge rejects Uber's $100m settlement with drivers

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By Gillian West, Social media manager

August 20, 2016 | 2 min read

A US judge has thrown out a settlement deal between Uber and some of its drivers deeming it "not fair, adequate or reasonable."

The $100m deal had been agreed after around 385,000 drivers filed legal action claiming they should be classed as employees and, therefore, entitled to expenses.

However, a San Francisco judge rejected the deal.

"The settlement, mutually agreed by both sides, was fair and reasonable. We're disappointed in this decision and are taking a look at our options," said Uber, who initially had offered to pay the drivers based in California and Massachusetts $84m.

They would then receive another $16m if the company decided to go public.

As a result of the case the company has introduced policy changes, agreeing to create and fund a driver's association in both states in addition to offering more information if and when a driver is "deactivated" as well as an appeals process.

A lawyer representing the drivers had deemed the settlement "historic" but the judge disagreed taking issue a number of clauses including one stipulation that some of the settlement money would only be paid out if Uber's valuation rose above a certain level.

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