Appeals court ruling weakens Uber driver class action

Th Uber Technologies Inc. car service app in 2014. :PHOTO- BLOOMBERG NEWSDecision by the Ninth Circuit Court of Appeals applies to lawsuit challenging background check practices

By Greg Bensinger and Lauren Weber | The Wall Street Journal

Uber Technologies Inc. was handed a victory Wednesday in a fight with its legions of drivers after an appeals court ruled most of the contract workers must resolve their differences through individual actions, rather than as a group.

The decision by the Ninth Circuit Court of Appeals applies to a lawsuit challenging Uber’s background-check practices, but the reasoning in it likely also applies to a high-profile case over drivers’ classification. In that class-action suit, Uber had agreed in a settlement to pay up to $100 million to some 385,000 drivers in two states, but a federal judge rejected that proposal last month.

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