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Uber reaches $3 million settlement with New York drivers over fees

Staff Writer |
Uber Technologies agreed to pay up to $3 million to settle a proposed class-action lawsuit brought on behalf of 2,421 drivers in New York.

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They accused the ride-sharing company of docking excessive fees from their fares.

A preliminary settlement was filed on Monday with the federal court in Brooklyn, New York, and requires approval by U.S. District Judge Nicholas Garaufis.

Drivers accused Uber of breach of contract for including sales tax and a “Black Car Fund” fee, which relates to workers’ compensation, in fares when calculating service fees, thereby increasing the amounts owed.

They also accused Uber of false advertising for allegedly offering guaranteed compensation without disclosing the conditions, such as in an ad telling drivers they could “DRIVE & MAKE $5,000 Guaranteed” in their first month behind the wheel.

The San Francisco-based company denied all allegations, and settled without admitting wrongdoing to avoid the cost and inconvenience of litigation, according to the settlement.

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