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US Judge Rejects proposed USD 100 mn deal in Uber driver suit::

 A US judge has rejected a proposed USD 100 million deal cut by Uber Technologies  Inc. to settle class-action litigation challenging the treatment of drivers as contractors in place of employees.

U.S. District Judge Edward Chen in San Francisco denied that the settlement in April of two class-action suits in California and Massachusetts is not fair, accurate or reasonable for drivers.

San Francisco-based Uber Technologies agreed to pay up to USD 100 million to settle the suits from drivers in both states. The deal enabled the global company to keep using independent contractors.

A draft of the proposed deal showed that Uber Technologies would pay money into a compensation fund for drivers, who would continue to be considered independent contractors.

The settlement called for Uber Technologies to revise some of those practices and pay USD 84 million to drivers and another USD 16 million in case the company goes public.