Popular ride-hailing service Uber has agreed to pay at least $10 million to settle a civil lawsuit filled by the district attorneys of Los Angeles and San Francisco counties in one of the biggest settlements of its kind in California.
The lawsuit focused on alleged problems with background checks for Uber drivers. It was a problem first exposed by the NBC4 I-Team almost two years ago.
The I-Team investigated how some Uber drivers had serious criminal records, even though the company said it conducted the most thorough background checks possible, screening out convicted criminals.
In the settlement, Uber agreed not to misrepresent its background checks to the public; it also agreed not to pick up passengers at airports where it's banned from doing business. The company must submit any changes in the technology of its popular cellphone app to the state.
Uber will pay $10 million up front and will have to pay another $15 million if it fails to comply with the terms of the settlement.
In settling the case, Uber said it already has made many changes prosecutors sought. For example, Uber stopped claiming its background checks were the best available under a different settlement earlier this year.
Source:nbclosangeles.com
Photo: flickr.com