Uber Shuts Down California Lawsuit with Settlement; $100 Million Expected to be Released

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A settlement of over $100 million was confirmed by Uber of being accounted for, aiming to rectify a business model challenge by permitting the vehicular service to sustain its California and Massachusetts drivers as independent contractors. Generally, the lawsuit claimed that Uber drivers are under employment and are entitled to expenses reimbursements.

As per Lions Ground News, the case appointed against Uber is being monitored closely in Silicon Valley. The class action was slated for a trial come June in San Francisco Federal Court, and with it, the involved parties know that there are those who believe in there will be those rendered upset over the decision.

An attorney for drivers, Shannon Liss-Riordan, was quoted on her simple statement, saying, "We realize that some will be disappointed not to see this case go to trial." One factor that was brought is that the plaintiff drivers may be up to some significant danger of losing once the case gets moved further, simply because the federal appeals court affirmed that there was a review made regarding drivers to sue as a group.

It was delivered by New York Times that there are no statements in connection to the settlement that prohibit the declaration of Uber drivers as employees, as supported by Liss-Riordan. As for the partition of the payment, the matters are quite a little more intriguing to some.

According to Reuters, the 100 million dollar payment guarantees a whopping $84 million to the drivers. In another vantage point, Uber says that they could come up with the remaining $16 million but under the condition that the company's evaluation expands to 150 percent above its December 2015 financing round. As vital information, Uber was given a value of $62.5 billion during the said funding period.

Uber officially agreed that some changes will be made to its business practices. Such include the institution of a policy for deactivation of drivers as per Chief Executive Travis Kalanick. It was estimated that 450,000 drivers use the app on a monthly basis.

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