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Judge rejects $100 million settlement in key case with Uber drivers

Judge rejects $100 million settlement in key case with Uber drivers

A federal judge has rejected a legal settlement that would have divided up to $100 million among about 380,000 Uber drivers to resolve claims the ride-hailing service has been exploiting them by treating them as independent contractors instead of employees.

U.S. District Judge Edward Chen declared the deal unfair in a decision issued late Thursday, complicating Uber's efforts to remove the legal threat of having its drivers classified as employees.

That distinction would give Uber's drivers more rights and benefits. That would in turn force the San Francisco company to change its business in ways that would cause its expenses to soar and potentially undercut its plans to...

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