Australian Supreme Court gives green light to $271.8 million Uber class action settlement agreement
The Supreme Court of Victoria has approved a landmark $271.8 million settlement between Uber Technologies Inc. and participants in the Australian taxi and hire car industries, marking the conclusion of years-long litigation.
This group proceeding, brought against several Uber entities, alleged that the introduction and operation of UberX from 2014 to 2017 unlawfully disrupted the market, causing financial loss to thousands of industry stakeholders.
The claimants included taxi and hire car drivers, licence holders, and operators from Victoria, New South Wales, Queensland, and Western Australia. They argued that Uber’s entry into the market led to significant declines in income and licence values. The legal proceedings centred on allegations of conspiracy by unlawful means, with plaintiffs seeking damages for the impact on their livelihoods.
Since the case’s commencement in 2019, the litigation has been fiercely contested, involving complex issues such as liability, loss quantification, and class closure orders. The latter ensured that only registered claimants could share in any settlement benefits, barring unregistered group members unless they secured court approval.
Settlement Terms
Uber has agreed to the $271.8 million settlement without admitting liability. This sum includes legal and funding costs, as well as interest. Distributions will be governed by a Settlement Distribution Scheme (SDS), categorising claims into various types such as capital loss, lease income loss, and driver claims. Legal fees will absorb approximately $38.9 million, while litigation funder Harbour Fund III, L.P. will receive $81.54 million.
Unregistered Group Members
A notable aspect of the settlement process was the handling of applications by unregistered group members. The court reviewed 6,476 such applications, granting leave to 140 individuals to participate. In doing so, the court weighed fairness to registered claimants against the merits of each unregistered applicant’s reasons for missing registration deadlines.
Justice Matthews acknowledged that while all unregistered members would face prejudice by exclusion, only those demonstrating compelling reasons for non-registration could join the settlement. This balanced approach aimed to uphold the integrity of the class closure orders while ensuring justice.
The court’s decision to approve the settlement reflects its view that the agreement is fair, reasonable, and in the best interests of the affected group members. Uber’s substantial payout, coupled with the structured SDS, offers claimants a resolution to long-standing grievances, bringing a close to one of Australia’s most significant class actions in recent years.
