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MarketWatch First Take: Uber settlement with drivers denied because California wouldn’t get enough money

A federal judge in California ruled Thursday that a class-action settlement between Uber Technologies Inc. and drivers for the company’s ride-hailing service was inadequate. However, the judge denied the settlement because of money that will mostly go to the state, not the drivers.

Uber and its drivers agreed to a deal that would pay $84 million, plus up to an additional $16 million, depending on Uber’s valuation increasing by the time it goes public. The settlement would have paid as much as $8,000 to some drivers, but the majority would receive $24 or less, according to earlier court documents.

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