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On-demand lawsuits: Judge rejects new Uber deal, Chamber sues Seattle again

March 13, 2017

A $7.75 million settlement in a misclassification case against human cloud firm Uber was rejected by a California judge on Friday, Bloomberg reported. Separately, the US Chamber of Commerce sued Seattle over a law that allows on-demand drivers to unionize and Alphabet Inc.’s self-driving suit against Uber continues.

Bloomberg reported Los Angeles Superior Court Judge Maren Nelson issued a tentative ruling rejecting a settlement offer to dispense with alleged labor-code violations that their lawyer earlier claimed might have been worth billions of dollars. 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.

Uber still faces a class-action case by California drivers in San Francisco after a federal judge in August rejected a $100 million settlement as inadequate. A critical appeals court hearing over the size and scope of that case is scheduled for June.

Separately, the US Chamber of Commerce has sued Seattle for a second time over its first-in-the-nation law that would give Uber, Lyft and taxi drivers the ability to form a union, The Seattle Times reported. The Chamber sued the city last year, but a federal judge tossed that lawsuit in August, ruling that the law had not been implemented so the chamber had not been harmed and could not yet sue. The lawsuit refiled Thursday argues that because Uber, Lyft and taxi drivers are contractors, not employees, they do not, under federal law, have the right to unionize — and Seattle does not have the authority to give them that right.

It’s already been a tough year for the San Francisco-based startup, valued at $69 billion. The Chicago Tribune reports Uber is facing calls from customers to #DeleteUber, reports of a toxic corporate culture, sexual harassment allegations, criticism from investors over the company’s response and the abrupt departure of a new senior executive over an undisclosed harassment claim from his previous job at Google.

The company is also contending with Alphabet Inc.’s lawsuit accusing it of copying technology for self-driving cars, ReCode reports. Alphabet’s Waymo, formerly Google’s self-driving car unit, filed an injunction against Uber for allegedly stealing intellectual property. Waymo, Alphabet’s self-driving project, has asked a judge to stop Uber from using what it believes is stolen intellectual property.