Uber has agreed to pay $10 million to settle the case that was filed against them over misleading background checks. District attorneys in San Francisco and Los Angeles were the ones who sued the company back in 2014.
In a report by The Guardian, the District attorneys' office accused Uber of falsely claiming the quality of their driver background checks, misleading the passengers. The prosecutors also said that the background checks made by the ride-hailing company were inferior to what taxi drivers undergo as they do not include fingerprint checks unlike most taxi companies do. The lawsuit was filed after it has been found out that 25 Uber drivers had serious criminal backgrounds.
Per the settlement, Uber said they have made many changes regarding the prosecutors' claims such as the company's statement that they have the most thorough background checks in the industry, The Verge reported.
The terms of the settlement also include the condition that if Uber fails to pay the $10 million payment within 60 days, the company must pay an additional $15 million. The extra penalty will be abandoned as long as Uber aides by the terms of the settlement. Other terms include Uber only operating at airports as this is where they have successfully received permission.
After the lawsuit was filed, Uber has had deals with San Francisco International Airport, Los Angeles International Airport, and other airports in northern and southern California where the company's drivers are allowed to drop off and pick up passengers.
San Francisco District Attorney George Gascon said in a statement that the result they have achieved regarding the lawsuit goes "well beyond its impact on Uber" as it sends a clear message to all businesses particularly the startups. Gascon added, "If a business acts like it is above the law, it will pay a heavy price," 89.3 KPCC reported.
A spokesperson for Uber also commented on the settlement saying they are glad the case has been put behind them and they are excited to redouble their efforts, serving riders and drivers across the state of California.
