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

Uber has agreed to pay $7.5 million to settle a lawsuit brought by drivers over background checks conducted by the ride-hailing company. 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 in April 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. Lawyers representing drivers in the background check case filed a memorandum of understanding in court and said they are in the process of drafting a formal settlement. Both settlements must be approved by a San Francisco federal court judge.

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