Lyft, driver settlement falls apart as judge rejects $12.25 million payment

On Thursday, a federal judge rejected a proposed $12.25 million settlement in a class-action dispute between Lyft and California drivers, saying that the sum "does not fall within the range of reasonableness."

In a filing, U.S. District Judge Vince Chhabria questioned the methodology on determining the $12.25 million monetary reimbursement to drivers, which was calculated based primarily on mileage claims. However, Chhabria charged that the drivers were shortchanged "by half on the reimbursement…