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A judge has rejected Uber's $100 million settlement with drivers

Aug 19, 2016, 03:19 IST

Uber representative registers people on smartphone during kick off of citywide jobs tour in Queens borough of New YorkShannon Stapleton/Reuters

A judge has rejected Uber's $100 million settlement with drivers, according to a court filing on Thursday.

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Judge Edward Chen denied the plaintiff's motion to settle the case, saying it was neither fair nor accurate, citing the tipping policy as one change not nearly as valuable as the settlement had suggested.

"The settlement, mutually agreed by both sides, was fair and reasonable. We're disappointed in this decision and are taking a look at our options," Uber said in an emailed statement.

In April, Uber announced it had agreed to settle a court case brought by drivers in California and Massachusetts for $84 million. If the company went public at a higher valuation, then it would have had to cough up an extra $16 million, to bring it to $100 million total.

However, Chen disagreed that the contingency payment could ever be considered part of the settlement since no information was given on the likelihood of Uber going public or at a valuation that would trigger the additional $16 million.

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