McKnight v. Uber settlement

A court authorized a notice because you have a right to know about the Settlement of a class action lawsuit known as McKnight et al. v. Uber Technologies, Inc. et al., Case No. 3:14-cv-05615-JST and about all of your options before the Court decides whether to approve the Settlement.

The notice and this Settlement website explain the lawsuit, the Settlement, your legal rights, what benefits are provided by the Settlement, who is eligible for them, and how to get them. The Court has approved the Settlement, and payments were issued on May 1, 2023.

Judge Jon S. Tigar of the United States District Court, Northern District of California is overseeing this case. The people who sued are called the “Plaintiffs.” Uber Technologies, Inc. and Rasier, LLC are the “Defendants.”

The lawsuit alleges that Uber made misrepresentations or omissions regarding the “Safe Rides Fee,” safety measures, and the background check process for potential drivers. The lawsuit asserted a number of causes of action, including Breach of Implied Contract, alleged violations of California’s Consumers Legal Remedies Act (Cal. Civ. Code § 1750 et seq.), California’s Unfair Competition Law (Cal. Bus. & Prof. Code § 17200 et seq.), California’s False Advertising Law (Cal. Bus. & Prof. Code § 17500 et seq.), and other violations of law.

The Defendants vigorously deny and continue to dispute all of the claims and contentions alleged in the lawsuit, and they deny any and all allegations of wrongdoing, fault, liability, or damage of any kind. Defendants further deny that they acted improperly or wrongfully in any way, and they believe that the lawsuit has no merit.

A copy of the lawsuit (the Plaintiffs’ Consolidated Class Action Complaint), the Settlement Agreement, and other case-related documents are posted on this Settlement website here. The Settlement resolves the lawsuit. The Court has not decided who is right.

In a class action, one or more people called “Class Representatives” (in this case, Plaintiffs Nate Coolidge, Byron McKnight, Ernesto Mejia, Julian Mena, and Todd Schreiber) sue on behalf of themselves and other people with similar claims. Together, all the people with similar claims (except those who exclude themselves) are members of a “Class.” Please see the response to FAQ 5 to determine whether you are part of the Class.

The Court has not decided in favor of the Plaintiffs or Defendants. Instead, both sides have agreed to the Settlement. By agreeing to the Settlement, the Parties avoid the costs and uncertainty of a trial, and if the Settlement is approved by the Court, Class Members will receive the benefits described on this Settlement website. The Settlement does not mean that any law was broken or that the Defendants did anything wrong. The Defendants deny all legal claims in this case. Plaintiffs and their lawyers think the Settlement is best for everyone who is affected.

The Settlement includes all persons who, from January 1, 2013, to January 31, 2016, used the Uber App or website to obtain service from one of the Uber Ride Services With A Safe Rides Fee in the United States or its territories. “Uber Ride Services With A Safe Rides Fee” means all transportation services that were arranged through Defendants’ website or the Uber App where a Safe Rides Fee was paid (such as UberX, etc.). “Uber App” means the Uber smartphone application by which riders may request Uber Rideshare Services. “Uber Rideshare Services” means all transportation services that are arranged through Defendants’ website or the Uber App, regardless of type of ride or service that is requested. “Uber” means the companies, incorporated in the State of Delaware as Uber Technologies, Inc. and Rasier, LLC, who operate the rideshare service commonly known as Uber. Excluded from the Class are (a) all persons who are employees, directors, and officers of Uber Technologies, Inc. and Rasier, LLC; and (b) the Court and Court staff. “Employees” means any person whose Uber account email address ended with “@uber.com” as of May 8, 2017.

If you are not sure whether you are in the Class or have any other questions about the Settlement, read the information provided on this Settlement website or call the toll-free number, 1-877-797-6083. You also may send questions to the Settlement Administrator at McKnight v. Uber Settlement, Rideshare Settlement Administrator, P.O. Box 3967, Portland, OR 97208-3967. Please do not address any questions about the Settlement to Uber, the clerk of the Court, or the judge.

The Defendants have agreed to pay $32,500,000 to create a “Settlement Fund.” The Settlement Fund will be used to pay the costs and expenses related to notice and administration of the Settlement, payments to Class Members (called “Settlement Shares”), the Service Awards to the Class Representatives, as approved by the Court, and the Attorneys’ Fees and Expenses to Class Counsel, as approved by the Court. If there are any funds remaining in the Settlement Fund after all Settlement Shares have been distributed (because, for example, it was not possible to pay a Class Member’s Uber Payment Account), they will be distributed to the nonprofit organization known as the National Consumer Law Center and not returned to the Defendants.

You could choose to receive your Settlement Share as a payment to your PayPal Account or bank account via eCheck by filing a Payment Election Form electronically. The deadline to submit a Payment Election Form has passed. If you did not file a Payment Election Form, you will receive a payment to your Uber Rider Account automatically as described in FAQ 9.

However, if you no longer have an Uber account, a single attempt will be made to pay your Settlement Share (less the average cost of distributing the Settlement Share) to a default U.S. credit card, U.S. debit card, PayPal account, or other payment method associated with your Uber Rider Account.

As part of the Settlement, Defendants have agreed to certain changes in their business practices. These include the following:

1. Defendants will not describe or title any fee that they charge for their services, including any charge for Uber’s Rideshare Services, as the “Safe Rides Fee.”
2. In any Commercial Advertising, Defendants will not make the following representations regarding their background checks:
   1. Defendants shall not list any offense type that does not result in automatic disqualification as a driver during the initial screening process without explaining the disqualification criteria; and
   2. Defendants shall not represent that they screen against arrests for any instances where Defendants actually screen only against convictions.
3. In any Commercial Advertising regarding background checks, Defendants shall identify the time period covered by the background check report Defendants use to screen potential drivers or, if shorter, any time period used for disqualification purposes.
4. In any Commercial Advertising, Defendants shall not use the terms “best available,” “industry leading,” “gold standard,” “safest,” or “best-in-class” in connection with their background checks.
5. In any Commercial Advertising, Defendants shall not use the following phrases to describe Uber’s Rideshare Services: “safest ride on the road,” “strictest safety standards possible,” “safest experience on the road,” “best in class safety and accountability,” “safest transportation option,” “background checks that exceed any local or national standard,” or “safest possible platform.”

If you did not exclude yourself from the Settlement (see FAQ 14), you will automatically receive your Settlement Share if you still have an Uber account (see FAQ 10 on how your Settlement Share is calculated). Settlement Class Members who filed a Payment Election Form had three payment method options:

• Option 1 (the “Uber Rider Account” option): Your Settlement Share will be paid to your Uber Rider Account (this is the account you created when you registered to use Uber), which will then be applied toward your next Uber ride in the United States. If you do not use the payment to your Uber Rider Account within 365 days of the Effective Date (the Effective Date is the date the Court’s final approval of the Settlement becomes effective), a single attempt will be made to pay your Settlement Share (less the average cost of distributing the Settlement Share) to a default U.S. credit card, U.S. debit card, PayPal account, or other payment method associated with your Uber account.
• Option 2 (the “PayPal Account” option): Your Settlement Share will be paid to the PayPal Account indicated on your Payment Election Form.
• Option 3 (the “bank account via eCheck” option): Your Settlement Share will be paid by an electronic check, which was emailed to the email address you provided on your Payment Election Form. eChecks are available for deposit in U.S. financial institutions only.

The deadline for submitting a Payment Election Form has passed.

If you did not submit a timely Payment Election Form indicating that you wish to receive your Settlement Share by a payment to your PayPal Account or bank account via eCheck, your Settlement Share will automatically be paid to your Uber Rider Account and applied to your next Uber ride in the United States that takes place after the payment to your Uber Rider Account. If you do not use Uber within 365 days of the Effective Date, then a single attempt will be made to pay your Settlement Share (less the average cost of distributing the Settlement Share) to a default U.S. credit card, U.S. debit card, PayPal account, or other payment method associated with your Uber account. In this event, if the payment attempt is unsuccessful for any reason, your share of the Settlement will be paid to the following nonprofit organization: National Consumer Law Center.

The amount that you will receive as payment under the Settlement is called your “Settlement Share.” The Settlement Share is calculated by allocating the $32,500,000 Settlement Fund after deducting the costs of and expenses related to notice and administration of the Settlement (capped at $487,000 for payments to the Settlement Administrator), the Service Award to the Class Representatives, as approved by the Court, and the Attorneys’ Fees and Expenses to Class Counsel, as approved by the Court. The amount remaining after deducting these costs from the Settlement Fund is called the Settlement Fund Balance. The Settlement Fund Balance will be allocated across all Class Members who have not opted out of the Settlement such that each Class Member will receive $0.25 for her or his first ride on an Uber Ride Service With A Safe Rides Fee, and then a per-ride amount for each additional ride on an Uber Ride Service With A Safe Rides Fee during the Class Period.

Class Members who did not submit a Payment Election Form will automatically receive their Settlement Share as a payment to their Uber Rider Account if they still have an Uber account. The Settlement Share payment to a Class Member’s Uber Rider Account is non-transferable and will be applied to the first Uber Rideshare Service in the United States billed to the Class Member’s Uber Rider Account. If the payment to a Class Member’s Uber Rider Account has not been used within 365 days after the Effective Date, one attempt will be made to apply the payment to the Class Member’s Uber Payment Account (less the average cost of distributing the Settlement Share). Settlement payments to Settlement Class Members were issued May 1, 2023.

Settlement payments were issued on May 1, 2023, to Settlement Class Members who did not exclude themselves from the Settlement.

Unless you excluded yourself from the Settlement you cannot sue or be part of any other lawsuit against the Defendants about the issues in this case, including any existing litigation, arbitration, or proceeding. Unless you excluded yourself, all of the decisions and judgments by the Court will bind you. If you filed a Payment Election Form for benefits or did nothing at all, you will be releasing Defendants from all of the claims described and identified in Paragraphs 31, 32, 33, 94, and 95 of the Settlement Agreement.

The Settlement Agreement available here provides more detail regarding the release and describes the Released Claims with specific descriptions in necessary, accurate legal terminology, so read it carefully. You can talk to the law firms representing the Class, listed in FAQ 17 for free, or you can, at your own expense, talk to your own lawyer if you have any questions about the Released Claims or what they mean.

If you did not want benefits from the Settlement, and you wanted to keep any right you might have to sue the Defendants about the issues in this case, then you must have taken steps to get out of the Settlement. This is called excluding yourself, or is sometimes referred to as “opting out” of the Class.

The deadline to exclude yourself from the Settlement has passed.

No. Unless you excluded yourself, you give up the right to sue Defendants for the claims that this Settlement resolves. If you have a pending lawsuit, speak to your lawyer in that lawsuit immediately. You must have excluded yourself from this Class to continue your own lawsuit. The deadline to exclude yourself from the Settlement has passed.

No. If you excluded yourself, you will not receive payment of your share of the Settlement Fund. But, you may sue, continue to sue, or be part of a different lawsuit against Defendants.

The Court has appointed the following lawyers as “Class Counsel” to represent all members of the Class:

You will not be charged for these lawyers. If you want to be represented by another lawyer, you may hire one to appear in Court for you at your own expense.

Class Counsel was awarded $5,730,223.38 for attorneys’ fees, plus reimbursement of reasonable, actual out-of-pocket expenses incurred in the litigation. The fees and expenses awarded by the Court will be paid out of the Settlement Fund.

The Court approved Service Awards of $500 each to be paid from the Settlement Fund to the Class Representatives for their service as representatives on behalf of the Class.

The deadline to submit an objection to the Settlement has passed.

Objecting is simply telling the Court that you do not like something about the Settlement. You could object to the Settlement only if you did not exclude yourself. Excluding yourself is telling the Court that you do not want to be part of the Settlement. If you excluded yourself, you had no basis to object to the Settlement because it no longer affected you.

On November 30, 2022, the Appeals Court Affirmed the Approval Order and the Settlement became effective March 1, 2023. Settlement payments for Settlement Class Members were issued on May 1, 2023.

If you are a Class Member with an Uber account and did nothing, you will automatically receive your Settlement Share as a payment to your Uber Rider Account, and you will give up the right to request that your Settlement Share be paid to your PayPal Account or bank account via eCheck. If you no longer have an Uber account, a single attempt will be made to pay your Settlement Share (less the average cost of distributing the Settlement Share) to a default U.S. credit card, U.S. debit card, PayPal account, or other payment method associated with your Uber account. And, unless you excluded yourself, you will be bound by the judgment entered by the Court. This means you will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit or proceeding against the Defendants about the statements and claims at issue in this case.

If you submitted a timely and valid Payment Election Form electing to receive an eCheck payment, you were sent an email containing your payment on May 1, 2023, to the email address provided on your most recent Payment Election Form. Your payment must be claimed and negotiated within 120 days of the check being issued by email. If your payment is not claimed and negotiated within 120 days, you will automatically receive your award as an Uber Credit.

If you submitted a timely and valid Payment Election Form electing to receive a credit to your PayPal account, you were sent an email requesting you claim your payment on May 1, 2023, to the email address provided on your most recent Payment Election Form. Your payment must be claimed within 120 days. If your payment is not claimed within 120 days, you will automatically receive your award as an Uber Credit.

If you submitted a Payment Election Form electing to receive a credit to your Uber account or did nothing, on May 1, 2023, you automatically received your award as an Uber Credit to your Uber account. This credit will be available for 365 days.

If you submitted a timely and valid Payment Election Form requesting to receive payment by eCheck or PayPal, an email would have been sent May 1, 2023, to the email indicated on the most recent Payment Election Form received. Please check your spam folder if you cannot locate your award payment email.

If you elected to receive a credit to your Uber account or did nothing at all, your payment will be automatically issued to your Uber account. To confirm you received your Uber Credit, you can check your Uber account balance.

If you are a Settlement Class Member, but do not know if you received a payment, you may contact the Settlement Administrator at:

McKnight v. Uber Settlement
Rideshare Settlement Administrator
P.O. Box 3967
Portland, OR 97208-3967

If you do not use your Uber Credit within 365 days of issuance, a single attempt will be made to pay your Settlement Share (less the average cost of distributing the Settlement Share) to a default U.S. credit card, U.S. debit card, PayPal account, or other payment method associated with your Uber account.

If you do not claim your PayPal payment within 120 days, your award will be made available as an Uber Credit on your Uber account. If you received your award payment email, but are experiencing issues claiming your payment, please contact PayPal directly.

If you would like to request your eCheck be reissued, you must submit a written request containing your name, mailing address, and email address associated with your payment to the Settlement Administrator at:

McKnight v. Uber Settlement
Rideshare Settlement Administrator
P.O. Box 3967
Portland, OR 97208-3967

If you are requesting a name change, you must provide acceptable supporting documentation along with your written request. Acceptable documentation may include but is not limited to

• a Marriage Certificate;
• a Death Certificate with Proof of Authority; and/or
• a Will and Testament

This Settlement website summarizes the Settlement. For the precise terms and conditions of the Settlement, please see the Settlement Agreement here. You may also write with questions to the Settlement Administrator at McKnight v. Uber Settlement, Rideshare Settlement Administrator, P.O. Box 3967, Portland, OR 97208-3967; or call the toll-free number, 1-877-797-6083.

PLEASE DO NOT CONTACT UBER, THE COURT, OR THE COURT CLERK’S OFFICE TO INQUIRE ABOUT THIS SETTLEMENT.