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Uber Agrees to Pay Out Millions Over Safety Claims


shutterstock_375260782Uber, the popular ride-sharing giant, will soon be out about $28.5 million (considering they are valuated at more than $60 billion, we don’t feel too bad). Uber agreed to pay as part of a settlement agreement following a class-action lawsuit which took aim at the company for failing to do top-notch background checks. The settlement requires that the company pay about 25 million riders. So when you divide that up and add in lawyer’s fees, that’s like a $1 a rider.

The company also agreed to reword the language around the fee that they charge for each rider. Instead of calling it a “safe ride fee,” it will now be a “booking fee.”

“We are glad to put these cases behind us, and we will continue to invest in new technology and great customer services so that we can help improve safety in the cities we serve,” the company said.

Customers were upset that the company charged a $2.30 fee for so-called industry leading background checks — only to find out that the checks didn’t include fingerprints. Many states require cab drivers to undergo fingerprint checking.

“However no means of transportation can ever be 100 percent safe. Accidents and incidents do happen. That’s why its important to ensure that the language we use to describe safety at Uber is clear and precise,” an Uber spokesperson said.

A judge must still okay the deal.

[h/t New York Times and AP]


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Rachel Stockman is Editor in Chief of Law&Crime and The Law&Crime Network. She is a former local news reporter, and was named Atlanta Press Club's 'Rising Star' in 2014. Rachel graduated from Northwestern University's Medill School of Journalism and Yale Law School.