Uber deal giving drivers $1 each fails to win over judge

[EC]

Uber Technologies failed to persuade a judge to approve a settlement offering 1.6 million California drivers an average of $1.08 apiece to dispense with alleged labor-code violations that their lawyer claimed might have been worth billions of dollars.

Los Angeles Superior Court Judge Maren Nelson issued a tentative ruling rejecting a deal aimed at resolving one of more than a dozen US lawsuits challenging the company’s contractor-based business model.

The judge said there’s merit to objections that the $7.75 million accord — most of which would go to state coffers, administrative costs, and lawyer fees — shortchanges drivers who sued seeking the protections and benefits of employees. Nelson also said the settlement provides too broad a release of liability for Uber from labor-code claims.

‘‘I need some analysis why it is fair and adequate,’’ she said during a hearing Friday.

More: http://www.bostonglobe.com/business/2017/03/10/uber-deal-giving-drivers-each-fails-win-over-judge/Ma07WneUdPHY45aI8rzCCM/story.html

[geronl]

The fact that 80% of the settlement goes to the government instead of the "victims" is the troubling part for sane people.

[Frank Cannon]

Uber is a loser. They lost $1 and a quarter billion in just the first half of last year.