Rejected Ohio’s plan to ban ride-sharing company Lyft
Lyft and Uber announced Monday that they had reached an agreement to stop fighting a $2 billion class action lawsuit, bringing an end to a battle that was a key point in a case that had pitted the two companies against each other.
“Today, the Court has concluded that the class action suit against Lyft and the company it operates is not a valid class action and that it will not be consolidated,” Judge Richard Posner wrote in a Monday ruling.
The judge’s ruling came a day after the company filed an appeal, which had been pending for months.
The case involved Uber drivers who claim they were not entitled to a wage reduction after the rideshare companies introduced Uber-style payment options in their cars.
In July, a federal judge threw out the case, saying that the companies’ agreements with the drivers were binding and the drivers should not have been required to pay for their Uber rides.
The company argued that Uber drivers should be able to make the payment without the companies, and argued that its drivers were employees.
The companies have argued that it is unfair to treat drivers differently because they work for the same company and are part of the same network.
In response, Lyft and other ride-hailing companies have said they will continue to offer discounted rides to drivers, which they say would give them a competitive edge.
Lyft was one of the first companies to adopt Uber-like payments after the ride-share companies launched in 2015.
The two companies have been battling each other for months over driver pay, and Lyft has argued that drivers should have to pay as much as $8.80 per mile for rides they did not use.
In the court filing, Lyft said it was working to resolve the dispute.
“We look forward to returning to the negotiation table with the parties to find a way to bring a meaningful settlement to this important class action settlement,” Lyft wrote.
“In the meantime, we respectfully request that the parties refrain from further actions that could undermine this settlement.”