Governor Gavin Newsom has signed a last-minute legislative agreement between Uber Technologies Inc and California trial attorneys, averting a potential ballot measure showdown. The agreement, embodied in SB 623, introduces new safety requirements for ride-hailing companies while tightening rules on medical lien practices that Uber says inflate car crash lawsuit payouts and reduce victims' settlements. Following Newsom's signature, both Uber and the Consumer Attorneys of California agreed to withdraw their competing November ballot initiatives, ending a months-long TV advertising battle with combined spending exceeding $50 million. As part of the deal, Uber will enhance driver background checks and adopt additional safety standards, which trial attorneys say could help prevent sexual assaults and other misconduct. The California Assembly and Senate overwhelmingly approved the bill before the deadline to remove the competing initiatives from the November election.
Uber Technologies IncAverted costly ballot fight and secured legislative deal with safety requirements, avoiding $50M+ ad battle.