site|engadget

Juul has faced numerous lawsuits over the past few years, accusing the company of targeting underage users with its marketing and sales tactics. Now, according to Bloomberg, Juul has agreed to pay $1.2 billion in settlement, which will resolve around 10,000 lawsuits — including 8,500 personal injury cases, over 1,400 cases by government entities and school districts, as well as 32 tribal cases. California, for instance, sued Juul in 2019, accusing the company of targeting minors in the state, failing to verify the age of its customers and failing to warn users of their exposure to chemicals linked to cancer and birth defects. 

The San Francisco Unified School District, which also filed a lawsuit against Juul over its marketing practices, reportedly said it was “very pleased” with the settlement. Who can actually participate in the settlement and how much each plaintiff will get are still under discussion. The plaintiffs’ lawyers said people eligible to sign onto the deal will receive a minimum gross amount of $1,000 before attorney fees and other deductions. They also said that most people are expected to receive “substantially higher settlements.” Plaintiffs who sued the company over personal injury will learn how much they’ll get in February, according to the lawyers. US District Judge William Orrick will still have to approve this proposed settlement before it can be finalized.

Juul has been under scrutiny since 2018 after the US Food And Drug Administration ordered e-cigarette brands to stop selling flavored pods if they can’t prove that they can keep them out of minors’ hands. It’s been facing one lawsuit after another since then. In addition to this particular deal, the company also agreed to pay $439 million to settle a two-year investigation by multiple states and Puerto Rico that accuse Juul of marketing products to teens. 

Back in November, New York City’s Taxi and Limousine Commission (TLC) voted to increase the pay rates of Uber and Lyft drivers to make up for the rise in inflation and and operational costs. The new rates were supposed to be implemented on December 19th, but now Uber has sued the commission to block the new rates from taking effect. According to Bloomberg, Uber said in its lawsuit that it would have to spend an additional $21 million to $23 million a month if the new rates are implemented and that it wouldn’t be able to recover those costs without raising fares.

To note, drivers’ per-minute rates are going up by 7.18 percent and per-mile rates by 16.11 percent under the new rules. That means for a 7.5-mile trip that takes 30 minutes, a driver would earn at least $27.15, which is $2.50 more than current rates. The drivers are also getting another pay bump in March 2023, based on inflation rates comparing December’s to September’s this year. A company spokesperson told Engadget that by increasing drivers’ pay this December, TLC is locking in “this summer’s high gas prices in perpetuity.” 

Freddi Goldstein, Uber spokesperson told us:

“With this latest rulemaking, on top of the annual inflation adjustment, the TLC is choosing to invent a new methodology that locks in this summer’s high gas prices in perpetuity with a ‘mid-year’ adjustment that takes place 12 days before the end of the year. The TLC should have followed its usual annual adjustment and instituted a temporary gas surcharge when gas prices were actually elevated.”

The company’s lawsuit seems to indicate that it intends to pass the costs associated with drivers’ pay increase to riders. “Such a significant fare hike, right before the holidays, would irreparably damage Uber’s reputation, impair goodwill, and risk permanent loss of business and customers,” its lawsuit said. In a strongly worded response to the lawsuit, TLC said acknowledged that Uber already charges 37 percent more today compared to 2019, but it said that the company is keeping money earned from fare hikes over the past few years to itself. 

The commission’s statement reads: “Just in time to steal Christmas from New York families, Uber is suing to stop the raise the TLC enacted for app drivers after months of public hearings, years of stalled wages, and the pandemic decimating incomes. Uber’s Grinch move is on top of denying a fuel surcharge to only NYC drivers when costs skyrocketed due to record high inflation, forcing drivers in one of their most profitable markets to choose between groceries and fueling up. 

Uber is already charging passengers 37% more today compared to 2019 AND KEEPING IT FOR THEMSELVES but says this modest raise for drivers is what will break the company. Shame on you, Dara Khosrowshahi. We call on the City to stand firm and defend the rights of drivers to labor with dignity. Uber seeks chaos. We seek dignity. We are confident we will prevail.”

The ride-hailing giant is now asking the court to declare the new pay rates as invalid and to prevent the first increase’s implementation this month while the lawsuit is ongoing. 

UPDATE 12/10/22 10:53AM: Uber clarified that it’s had rate hikes over the past years and that the per-minute increase is 7.18 percent, while the per-mile is 16.11 percent. We also added the company’s official statement.