The war may be over for Uber Technologies Inc. But by cutting a check for tens of millions of dollars to settle a slew of threatening labor class actions, it may have just bought the gig economy a whole new set of legal battles.
Lawyers say the $84 million settlement that Uber reached—which can rise to as much as $100 million if the company goes public or is acquired and increases in value—is like a flashing neon invitation for the plaintiffs bar to keep waging the fight.
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“It does leave a lot unsettled,” Davidoff Solomon said. “But given the rise of arbitration agreements … most of this will be funneled out of the court.” Companies eyeing the Uber battle, and a similar suit against Lyft Inc., have retooled their agreements to make sure they are air-tight, he said.
