Class Action Certification for the Uber Lawsuit
The uber lawsuit is a class-action suit filed by Francis Mailman Soumilas, P.C. The plaintiffs allege that Uber unfairly suspended drivers for criminal offenses without giving them the appropriate notice or an opportunity to contest their criminal history. The class-action lawsuit is currently pending in the US District Court for the Central District of California. If you’re considering filing a lawsuit against Uber, read this article to learn more about the latest developments.
Class-action certification for the uber lawsuit
Whether or not the Uber lawsuit will result in class-action certification is an important question, especially considering how important the decision is to the gig economy. The recent Supreme Court decision is a landmark case that casts a long shadow over the gig economy. On appeal, Perell J. upheld a lower court’s decision to enforce Uber’s arbitration clause. Citing the Supreme Court’s decision, Perell J. opined that plaintiffs had “reasonably strong arguments” against the class-action waiver. The Supreme Court’s ruling may hint at the imbalance of bargaining power in the gig economy.
In this case, drivers allege that the ridesharing company misclassified them as independent contractors and did not provide them with the benefits they should be receiving as an employee. For example, drivers have a right to paid sick leave, which California law requires. Uber has also faced several lawsuits over driver misclassification, and the state of California filed suit to make sure that they are properly classified. But if they can prove that they are employees, they can win class-action certification in California.
Impact of the uber lawsuit on other ride-hailing companies
The latest lawsuit filed by Uber has brought the company’s tangled relationship with the New York City government into question. The suit alleges that Uber fails to properly screen drivers and routinely hires people with criminal records. Moreover, Uber fails to provide drivers with appropriate training about the ADA. The lawsuit will seek to stop Uber from discriminating against people with disabilities, pay damages to those who were unfairly charged for waiting times, and pay a civil penalty for the city’s violation of the ADA.
The plaintiffs in the Uber lawsuit say that their drivers should be considered employees and not independent contractors. The California Supreme Court has written into law criteria that must be met to determine worker status. They believe that Uber drivers are part of a class of at least 50,000 people. However, a judge will decide if the lawsuit affects a class of drivers with similar claims. The lawsuit is a step toward the creation of a more equitable system.
Impact of the uber lawsuit on IPO
The recent IPO of Uber has been marred by a class-action lawsuit filed by investors who contend that the company painted an unrealistic picture of itself before the IPO. It has also faced several regulatory hurdles, including a ruling in California ordering it to reclassify its workers as employees. The preliminary injunction was recently stayed, pending an appeal. However, the lawsuit has triggered a flurry of investor concerns.
In August 2017, CEO Dara Khosrowshahi introduced himself to the staff and said the company was on track to go public in 18 to 36 months. However, this timeline has been pushed back due to multiple issues, including the fact that Uber has not yet hired a CFO. First and foremost, the company must stop losing money. While its revenue has grown, losses have continued to occur. The lawsuit has also forced the company to cut 400 jobs in the marketing department, putting its IPO timeline on hold.
Impact of the uber lawsuit on other class-action lawsuits
The latest case involving Uber vs. drivers was a landmark settlement. While Uber will continue to classify drivers as independent contractors, it will provide more information about its quality rating, allowing drivers to compare themselves to other drivers and layout its terms for deactivating drivers. Moreover, the California commission recently ruled that Uber drivers are employees, and awarded them $4,000 in damages. If the California commission’s ruling is upheld, other class-action lawsuits may follow.
A recent settlement by Uber resolved a wrongful death lawsuit in which a six-year-old girl was killed by an Uber driver. The settlement was not disclosed. Regardless of the outcome of the case, it could impact class-action lawsuits against other companies in the sharing economy. In April 2016, Uber settled two class-action lawsuits involving its drivers. Under the settlement, eligible drivers would have remained contractors and received $100 million based on the miles they drove. Moreover, Uber agreed to partially fund a drivers’ association and provide more information to drivers who were deactivated by the company.