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April 1, 2016

Uber CEO faces class-action lawsuit over price fixing

by John_A

After failing to get a class-action lawsuit dismissed, Uber CEO Travis Kalanick will go to court over price fixing claims. A US district court judge in New York ruled Kalanick has to face the class of passengers alleging that he conspired with drivers to set fares using an algorithm, including hiking rates during peak hours with so-called surge pricing. According to Reuters, district court judge Jed Rakoff ruled the plaintiffs “plausibly alleged a conspiracy” to fix pricing and that the class action could also pursue claims the set rates led to the demise other services, like Sidecar.

The ride-hailing app is no stranger to legal trouble. In addition to fighting for the right to operate in a number of countries outside of the US, Uber faced driver protests and criticism over benefits for full time employees and how it screens drivers. The company has also received a lot of scrutiny over its practice of charging higher rates during times of high demand. Earlier this year, New York City announced that it wouldn’t place limits on Uber’s surge pricing or limit the number of cars it could put on the city’s streets. We’ve reached out to Uber on the matter and we’ll update if/when it responds.

Via: IT Pro

Source: Reuters

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