The district attorneys of San Francisco and Los Angeles have settled an unlawful business practice lawsuit against Uber over claims the company made misleading statements about its background checks for drivers.
The suit, filed in late 2014, alleged that Uber made untrue claims when it said it offered "the safest ride on the road" and that its drivers undergo rigorous background checks that are "industry-leading."
According to a press release from San Francisco District Attorney George Gascón and Los Angeles District Attorney Jackie Lacey, Uber and its subsidiary, Raiser, agreed to pay as much as a $25 million civil penalty.
"It sends a clear message to all businesses, and to startups in particular, that in the quest to quickly obtain market share, laws designed to protect consumers cannot be ignored," Gascón said in a statement.
Uber's background checks have been criticized as not being as thorough as fingerprint background checks, which taxicab drivers in most large American cities are required to pass.