Uber To Pay $7.5M Settlement In Lawsuit Over Driver Background Checks

Uber Technologies has agreed to pay $7.5 million to settle a lawsuit brought by drivers over background checks conducted by the ride-hailing company, according to a court filing Wednesday.

The federal court case in San Francisco involved allegations that Uber terminated drivers from its platform after obtaining their consumer background reports without authorization.

The settlement is the latest in an effort by Uber to remove some of the litigation risk facing the company. It agreed in April to pay as much as $100 million to settle a separate class-action lawsuit involving drivers who claimed they were employees entitled to benefits, not independent contractors.

An Uber representative declined to comment.

Attorneys representing drivers in the background-check case filed a memorandum of understanding in court Wednesday, and said they are in the process of drafting a formal settlement.

Those lawyers had previously raised concerns that the $100 million settlement could make it harder for their clients to pursue claims over the background checks.

An attorney for the drivers could not immediately be reached for comment.

Both settlements must be approved by a federal court judge in San Francisco.