June 24 (Reuters) - A U.S. appeals court on Monday
tossed out a proposed class action claiming Uber Technologies' ( UBER )
policy of terminating drivers with low passenger
ratings is racially discriminatory.
The San Francisco-based 9th U.S. Circuit Court of Appeals
said Thomas Liu, a driver who filed the 2020 lawsuit, had not
provided any evidence showing that Uber ( UBER ) kicked non-white drivers
off its app at a higher rate than white drivers with low
ratings.
Liu's lawyers had argued that statistical evidence backing
up their claims would only be available if the case were allowed
to proceed to discovery, when plaintiffs can seek documents and
testimony from defendants. But a three-judge 9th Circuit panel
said Liu had failed to provide anything beyond speculation to
buttress his claim that Uber's ( UBER ) system is discriminatory.
Uber ( UBER ) did not immediately respond to a request for comment.
Shannon Liss-Riordan, a lawyer for Liu, said she was "deeply
disappointed and concerned" about the ruling and would likely
ask the court to reconsider it.
Uber ( UBER ) asks passengers to rate drivers on a scale of one to
five and deactivates drivers who fail to maintain high scores.
Liu, who is Asian-American, said in the lawsuit that he was
deactivated after his rating fell below 4.6.
Liu claims passengers are more likely to give poor ratings
to non-white drivers, and Uber's ( UBER ) use of the rating system
violates Title VII of the Civil Rights Act of 1964 and
California anti-discrimination law.
U.S. District Judge Vince Chhabria in San Francisco granted
Uber's ( UBER ) motion to dismiss the case in 2022, saying there was no
plausible allegation of a statistical disparity among drivers of
different races. He said a survey by Liu's lawyers of thousands
of Uber ( UBER ) drivers that showed a disparity was flawed.
The 9th Circuit on Monday agreed, saying the survey had
numerous flaws and said nothing about the racial composition of
the overall population of Uber ( UBER ) drivers.
Liu was backed by the U.S. Equal Employment Opportunity
Commission, which enforces Title VII.
The agency said in a friend-of-the-court brief that Liu
cited research showing that customer ratings are likely to be
influenced by bias, including for Uber ( UBER ) drivers and other gig
workers. That coupled with the survey by Liu's lawyers was
enough to establish a plausible case, the commission said.