(credit: Uber)
Uber has agreed to pay $28.5 million to settle a federal class-action lawsuit originally filed in late December 2014 by six men who argued that the startup’s claim of running "industry-leading background checks" was false and misleading. Passengers paid a "safe ride fee," usually $1 to $2 on top of each fare, as a way to offset those costs.
Under the terms of the deal, which was filed on Thursday, Uber will now rename this charge as a “booking fee,” and will alter its language accordingly. The settlement also states that Uber and its subsidiary “expressly deny the allegations” and admit no wrongdoing.
Specifically, the consolidated complaint, which combined other similar lawsuits, alleged:
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