Uber pays millions to settle class action with taxi drivers and operators

This marks the fifth largest class action settlement in Australian legal history

Uber pays millions to settle class action with taxi drivers and operators

Uber has agreed to pay $271.8m to compensate taxi and hire car drivers, operators, and licence holders in a class action against the ride-sharing giant.

The lawsuit targeting Uber was set to be heard in the Supreme Court of Victoria, the court called off the trial following the rideshare company's agreement to the settlement. The class action was initiated in 2019 by Maurice Blackburn Lawyers on behalf of more than 8,000 taxis and hire car owners and drivers. These individuals claimed significant financial losses due to Uber's aggressive entry into the Australian market, which they argued led to decreased income and the devaluation of their licenses.

According to the law firm, the agreement marks the fifth largest class action settlement in Australian legal history.

Michael Donelly, a principal at Maurice Blackburn Lawyers, reflected on the five-year legal battle that preceded the settlement. "Uber fought tooth and nail at every point along the way, every day, for the five years this has been on foot, trying at every turn to deny our group members any form of remedy or compensation for their losses," Donelly stated. He highlighted the determination of the plaintiffs to secure justice, noting that "thousands of everyday Australians joined together to stare down a global giant."

The legal team at Maurice Blackburn Lawyers expressed immense pride in their accomplishment, emphasising the trust placed in them by thousands of individuals affected by Uber's business practices.

"We are extremely proud to have succeeded today in holding Uber to account, in securing the fifth-largest ever class action recovery in Australian legal history for our clients, a $271.8m sum that will finally put real money back into the accounts of people who have been devastated," Donelly said.

The settlement must receive formal approval from the Supreme Court before it can be disbursed. The Supreme Court is anticipated to review an application to approve the class action settlement in April.

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