A federal court battle that kicked off back in 2006 over how the Taxi and Limousine Commission yanked drivers’ licenses after arrests is finally close to paying out, with up to $140 million on the table for nearly 20,000 current and former taxi, livery and app-based drivers. Payouts are pegged to how long a license was suspended and can reach roughly $36,000 for the longest suspensions, with a claims process now underway to sort out who gets what.
Settlement details
The settlement, known as Nnebe v. Daus, covers TLC license suspensions tied to arrests between June 28, 2003 and Feb. 18, 2020 and identifies roughly 19,500 class members. The proposed payout grid caps individual awards from about $700 for very short suspensions up to $36,000 for suspensions of 391 days or more. Under the deal, drivers who did not ask for individual damages hearings will receive 37.5% of the otherwise applicable award. Those terms, along with the full allocation schedule, are laid out in the settlement agreement and related court papers, according to the plaintiffs' filing.
How to claim and what the payouts look like
Class members identified by the TLC will get notices in the mail and can file claims online or by mail using a signed claim form. Drivers will have to provide basic identifying details and a W-9 for tax reporting. The settlement administrator listed on the case website will review claims, send out deficiency notices if something is missing, and mail checks to approved claimants once the court signs off on final distribution. Step-by-step instructions, an online claims portal and FAQs are posted on the official settlement website.
Why now: the court asked for fresh apportionment
The case has been inching toward payouts since the parties agreed to create a $140 million fund, but an April 28, 2026 court order told class counsel to provide updated apportionment tables after they reported that claim submissions already topped $130 million. That raised the possibility the fund is oversubscribed and that individual awards may need to be scaled down. The judge’s request for new numbers came after a final-approval process and fairness hearing held last year, and the court ordered more paperwork so it can decide how to split limited funds among eligible drivers, per the court order.
For many drivers and advocates, the settlement closes out a long-running fight over whether TLC drivers were given basic due process when their licenses were suspended. Bhairavi Desai, executive director of the New York Taxi Workers Alliance, called the deal “historic, and long overdue,” saying it recognizes years of drivers being suspended on the basis of arrest alone, according to reporting on the settlement announcement. The lawsuit was first filed in 2006 and was carried for nearly two decades by attorneys including Daniel Ackman and later Shannon Liss‑Riordan and colleagues; that history is detailed in coverage of the settlement and by the lawyers who litigated the case, per Documented.
Legal fight over fees and what’s next
One unresolved issue is how much the lawyers will be paid. Plaintiffs’ counsel have said they will seek up to 25% of the distributed awards, or roughly $35 million, while the city has pushed for a far smaller number in its filings. The court has set briefing deadlines on that request and told the city to spell out any objections. Judges typically look at both a percentage-of-fund approach and a lodestar calculation before deciding what qualifies as a reasonable fee, and the outcome here will directly affect how much money ends up in drivers’ pockets.
Recent coverage of the case notes that the city urged a tight cap on legal fees and that the judge suggested a much smaller “proper” fee range in comments reported by local outlets. The parties are now waiting for the court’s ruling on fees and related issues before any checks go out, according to reporting by amNewYork.
What drivers should do now
Drivers who think they are part of the class should keep an eye on their mail for the official notice and follow the instructions on the claims portal. The notices will explain how to file a claim, how much time drivers have to opt out or object, and what supporting documents are required. The settlement administrator will cross-check claims against TLC records, send out deficiency notices if anything does not match or is incomplete, and then handle distributions once the court finishes ruling on fees and apportionment. The settlement website is the central hub for forms, deadlines and updates, and drivers can also reach out to class counsel or the New York Taxi Workers Alliance for help navigating the process, per the settlement site.
The agreement ends a major chapter of litigation but leaves some tricky math on the table: final payouts will depend on how many valid claims come in, how the judge rules on attorneys’ fees, and whether any leftover cash is redistributed to drivers or sent back to the city. For now, eligible drivers are advised to hang on to TLC records and any paperwork related to suspensions and hearings, check the settlement website regularly for deadlines, and watch for the court’s final orders on allocation and fees. Background on the case and the original complaint is available from Ackman Law.
