Plaintiffs Jose Ortega and Joce Martinez (“Plaintiffs”), who provided transportation services arranged using the Uber App, filed a putative class action lawsuit against Defendants, asserting, among other things, wage and hour claims under the New York Labor Law, a common law claim for breach of contract, and a claim for false advertising, on behalf of themselves and other transportation providers in New York State (“drivers”).
Plaintiffs premised their breach of contract claim on the theory that Defendants allegedly (i) inflated the service fee charged to drivers by: including sales tax and Black Car Fund fees “in the fare instead of calculating the fare net of such charges,” allegedly causing drivers to pay an inflated service fee contrary to their agreements with Defendants; (ii) failed to remit taxes and fees, including sales tax and Black Car Fund fees to drivers; and (iii) failed to remit to drivers “the total proceeds of all gratuities” received.
Plaintiffs premised their false advertising claim on the theory that some of Defendants’ advertising materials have been misleading insofar as they allegedly “offer guaranteed compensation without disclosing the actual conditions imposed,” and that Defendants allegedly failed to remit “guaranteed payments promised” in the advertisements.
Defendants strenuously deny the allegations in the lawsuit, and maintain that they did not violate any laws with respect to Plaintiff Ortega, Settlement Class Members, or Plaintiff Martinez, whose claims were ordered to individual arbitration.
The Court did not decide which side was right. Both sides agreed to a settlement to resolve the Action, and to avoid further disputes, inconvenience, and expense. The settlement is not to be construed as or deemed an admission of liability, culpability, negligence, or wrongdoing on the part of Defendants.
Defendants do not discourage your participation in the settlement, and will not take any retaliatory action against you for participating or not participating in the settlement.