(Reuters) – A U.S. judge on Thursday rejected a proposed class action settlement in a lawsuit brought by Uber drivers who claimed they were employees entitled to expenses.
U.S. District Judge Edward Chen in San Francisco ruled that the settlement, in which Uber would have paid up to $100 million, was not fair or adequate for drivers. The deal would have affected roughly 385,000 current and former drivers in California and Massachusetts.
Uber drivers contended in the lawsuit they should be deemed employees and entitled to reimbursement for expenses, including gasoline and vehicle maintenance. Those expenses are now borne by the drivers.
The proposed Uber settlement would have kept drivers classified as independent contractors and faced several objections, particularly because the proposed amount was well below the total potential damages in the case of $852 million.
An Uber representative could not immediately comment on the ruling, and an attorney for drivers could not immediately be reached.