Human cloud, ride-sharing firm Uber Technologies Inc. updated investors on independent contractor misclassification claims against the company — including up to USD 170 million for individual drivers claiming misclassification — as well as other challenges in a filing Thursday with the US Securities and Exchange Commission. Uber’s filing comes shortly before its initial public offering, and on the day after drivers in several countries worked to organise a strike over pay.

Uber noted it set aside USD 132 million to pay independent misclassification claims brought by drivers in arbitration hearings. The filing said 60,000 drivers in the US as of 8 May have or may file for arbitration claiming they were misclassified as independent contractors. These drivers are not included in court hearings because they agreed to have their claims against the company heard individually in arbitration outside of court. Uber wrote the approximate range of settlements along with attorney’s fees is expected to be USD146 million to USD170 million.

The arbitration claims are in addition to the USD 20 million Uber agreed to pay to settle a lawsuit by drivers in California and Massachusetts who claimed they were misclassified as independent contractors. A final approval hearing in US court on this settlement is scheduled for July.

The update to investors highlighted that, within certain jurisdictions including key markets such as Argentina, Germany, Italy, Japan, South Korea, and Spain, Ubers ridesharing business model has been blocked, capped, or suspended, and they have been required to change their business model, due primarily to laws and significant regulatory restrictions. Uber’s filing also cited possible risks over its licence to operate in London. 

Transport for London decide in September 2017 to not renew the company’s licence to operate in the city. Uber appealed that decision in June 2018, and was granted a licence to operate in London on a 15-month term instead of the usual five-year term. However, the company noted if its licence is not renewed, it would again appeal.

Still, the company said an adverse decision in London could impact its operations there and possibly elsewhere.

“Any inability to operate in London, as well as the publicity concerning any such termination or non-renewal, would adversely affect our business, revenue, and operating results,” according to the filing. “We cannot predict whether the TfL decision, or future regulatory decisions or legislation in other jurisdictions, may embolden or encourage other authorities to take similar actions even where we are operating according to the terms of an existing licence or permit.”

Uber also noted that, this month a class action lawsuit was filed against the company in the Supreme Court of Victoria, Australia. The lawsuit was filed by taxi, hire-car and limousine firms claiming that Uber was operating unlawfully between April 2014 and August 2017.

The company also said that in some countries, clients can pay in cash, and that has raised security concerns for drivers. “In certain jurisdictions such as Brazil, serious safety incidents resulting in robberies and violent, fatal attacks on Drivers while using our platform have been reported.”