A deal between Lyft and lawyers representing some drivers, in which the ride-hailing app would pay $12.25 million to end a lawsuit, has been thrown out by the federal judge overseeing the case.
In a 21-page order (PDF), US District Judge Vince Chhabria says that the $12.25 million payment seriously shortchanges the proposed class of drivers—and the state of California. Plaintiffs' lawyers said the $12.25 million was a reasonable cut for the $64 million that drivers deserved for mileage reimbursements they would have received as employees. But Chhabria's calculation of that reimbursement, using the drivers' own methodology, was that it's worth more than $126 million.
"The drivers were therefore shortchanged by half on their reimbursement claim alone," he concludes.
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