03:57 PM EDT, 06/24/2024 (MT Newswires) -- Uber Technologies' ( UBER ) use of its star rating system to terminate drivers was deemed insufficiently linked to causing a "significant disparate impact" on non-white drivers, and the allegations failed to raise a plausible inference of such a causal relationship, US Court of Appeals for the Ninth Circuit ruled Monday.
Former Uber ( UBER ) driver Thomas Liu, the plaintiff, cited personal experiences of passengers canceling rides after seeing his picture. However, the rating system is only available post-ride, leaving unexplained how these passengers could impact a driver's low rating, the court added.
"The cited materials in Liu's complaint lack sufficient data concerning relevant actual conditions to provide a non-speculative basis for plausibly inferring that any such significant disparity is actually occurring with respect to Uber ( UBER )," according to the decision.
The Ninth Circuit also rejected the plaintiff's disparate impact claim, noting that the legal team's survey was flawed and used an incorrect comparison base that did not properly assess termination rates by race.
Uber ( UBER ) did not immediately respond to MT Newswires' request for comment.
Price: 70.74, Change: +0.53, Percent Change: +0.75