Uber Agrees To Settle DA Suits Over Safety Practices
by Jason Doiy, The Recorder
Uber Technologies Inc. will pay up to $25 million to settle a lawsuit brought by the San Francisco and Los Angeles district attorneys’ offices over how it has touted safety measures. The agreement follows the settlement of a pair of class actions in February over the same practices. San Francisco District Attorney George Gascón said the deal affects more than Uber.
“It sends a clear message to all businesses, and to startups in particular, that in the quest to quickly obtain market share, laws designed to protect consumers cannot be ignored,” Gascón said in a statement. “If a business acts like it is above the law, it will pay a heavy price.”
As part of the settlement, Uber agreed to change the way it describes its driver checks and safety practices and to cooperate with the Division of Measurement Standards to certify that ride charges are accurate and fair.
Uber will pay $10 million of its fee in the next 60 days, with a chance to have the remaining $15 million waived after two years if the company complies with all terms of the permanent injunction. Uber was represented by Morrison & Foerster partner William Stern, who referred comment to Uber, which did not return messages seeking comment.
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Tags: Class Action, Deceptive, Transportation Network Companies, Uber