Uber Settles Driver Lawsuit Over Background Checks, to Pay $7.5 Million

Uber has agreed to pay $7.5 million (roughly Rs. 50 crores) to settle a lawsuit brought by drivers over background checks conducted by the ride-hailing company, according to a court filing on Wednesday.

The case in San Francisco federal court involved allegations that Uber terminated drivers from its platform after obtaining their consumer background reports without authorization.

The settlement is the latest in an effort by Uber to remove some of the litigation risk facing the company. Uber agreed to pay up to $100 million to settle a separate class action lawsuit involving drivers who claimed they were employees entitled to benefits, not independent contractors.

An Uber spokesman declined to comment.

Lawyers representing drivers in the background check case filed a memorandum of understanding in court on Wednesday, and said they are in the process of drafting a formal settlement.

Those attorneys had previously raised concerns that the $100 million settlement could make it harder for their clients to pursue claims over the background checks.

An attorney for the drivers could not immediately be reached for comment.

Both settlements must be approved by a San Francisco federal court judge.

© Thomson Reuters 2016