March 14 (Reuters) - A group of Uber ( UBER ) and Lyft ( LYFT ) drivers

have dropped a class-action lawsuit in California that accused

the ride-hailing companies of unfairly stopping them from

setting their own fares as independent contractors.

The drivers in a filing on Wednesday said they had dismissed

their case, which hit a major setback last year when a San

Francisco Superior Court judge ruled that the plaintiffs would

be required to arbitrate their claims individually.

The plaintiffs last week dropped their appeal of the

arbitration decision. It was unclear whether they would pursue

arbitration claims.

Attorneys for the drivers at plaintiffs' law firm Edelson

and Colorado-based Towards Justice did not immediately respond

to requests for comment.

Uber ( UBER ) and Lyft ( LYFT ) did not immediately respond to similar

requests.

The lawsuit by current and former drivers, filed in 2022,

was a novel legal challenge against two of the biggest on-demand

rideshare companies. The complaint said Uber ( UBER ) and Lyft ( LYFT ) were

engaged in illegal price-fixing.

Uber ( UBER ) and Lyft ( LYFT ) have won rulings in recent years beating back

claims from drivers that they should be declared employees with

a broader range of benefits than independent contractors.

Unlike those cases, the lawsuit in San Francisco alleged

that drivers as independent contractors should have control over

setting fare prices. The lawsuit said policies at Uber ( UBER ) and Lyft ( LYFT )

"deprive those drivers of economic independence" by fixing the

prices that drivers must charge and sought an order ending the

practice.

Lyft ( LYFT ) and Uber ( UBER ) had quickly argued that the claims belonged in

private arbitration based on driver contracts.

The drivers' lawyers countered that the plaintiffs had opted

out of arbitration agreements and should be allowed to sue in

court as a class action.

But a judge last year concluded that the plaintiffs "did not

opt out (or even attempt to opt out) of all of the arbitration

agreements." The court also struck down the case as a

prospective class action.

The Biden administration in January unveiled a new rule that

would make it harder for companies to classify their workers as

independent contractors. Uber ( UBER ) and Lyft ( LYFT ) have said the rule likely

will not require them to designate their drivers as employees.

The case is Gill v. Uber Technologies ( UBER ) and Lyft ( LYFT ), San

Francisco Supreme Court, No. CGC-22-600284.

For plaintiffs: Rachel Dempsey of Towards Justice and Yaman

Salahi of Edelson

For Lyft ( LYFT ): Rohit Singla of Munger, Tolles & Olson

For Uber ( UBER ): Karen Dunn of Paul Weiss

Read more:

Can US independent contractor rule survive legal challenges,

Congress?

Uber ( UBER ), Lyft ( LYFT ) drivers claim price-fixing in lawsuit against

companies