UPDATE 2-U.S. judge rejects Uber's driver expenses settlement

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By Dan Levine and Heather Somerville
| SAN FRANCISCO

SAN FRANCISCO A U.S. judge on Thursday rejected an attempt by Uber Technologies Inc to settle a class action lawsuit with drivers who claimed they were employees entitled to expenses.

In a case that has been closely watched in Silicon Valley, where many companies use on-demand workers, U.S. District Judge Edward Chen in San Francisco ruled that the settlement was not fair or adequate for drivers.

Some drivers had objected to terms of the settlement valued at up to $100 million, which would have affected roughly 385,000 current and former drivers in California and Massachusetts.

Uber drivers contended in the lawsuit they should be deemed employees and entitled to reimbursement for expenses, including gasoline and vehicle maintenance. Those expenses are now borne by the drivers.

The…

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