Judge allows Uber surge-pricing lawsuit to move forward

A judge Thursday allowed a lawsuit claiming that Uber’s technology violates consumer protection laws to go forward.

Bloomberg reported that a district court judge in New York rejected Uber CEO Travis Kalanick’s bid to dismiss the class-action lawsuit, which names him personally.

{mosads}The lawsuit claims Uber allows drivers, who are independent contractors, to unfairly coordinate price increases through its “surge pricing” feature. The feature calculates moments of high-demand on the platform’s network of drivers and raises fares based on an algorithm.

The company, which is representing the CEO, says the premise of the suit is preposterous. Kalanick says it would be impossible to pull off the alleged conspiracy, according to Bloomberg. Uber also disagrees with the claim that Kalanick is personally engaged with any effort to coordinate surge pricing.

“We disagree with this ruling,” a spokesperson said in a statement. “These claims are unwarranted and have no basis in fact. In just five years since its founding, Uber has increased competition, lowered prices, and improved service.”

The company said the ruling was procedural in nature and that it was confident in its case moving forward.

The suit is sure to draw attention, in part because it names the high-profile Kalanick personally but also because Uber is currently facing a class action suit that alleges it misclassified its drivers as independent contractors rather than employees, who often get more benefits. That case is set to move forward this summer.