Governor Gavin Newsom has signed a last-minute legislative agreement between Uber Technologies Inc (NYSE:UBER) and California trial attorneys, thereby 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.
Although Uber initially sought stricter limits, the agreement does not impose firm caps on attorneys' fees in car crash lawsuits.
Following Gov.
Gavin Newsom's signature, both Uber and the Consumer Attorneys of California agreed to withdraw their competing November ballot initiatives.
