(Bloomberg) – Lyft Inc. moved a big step closer to sealing a $27 million deal with drivers that leaves them classified as independent contractors.

U.S. District Judge Vince Chhabria in San Francisco on Thursday gave the deal preliminary approval after ruling in April that an earlier $12.5 million offer would shortchange drivers based on the company's surging revenue.

"The new proposed settlement agreement fixes the monetary flaws the court previously identified and enhances the nonmonetary benefits at least to some degree," the judge wrote in finding that the deal is fair and reasonable.

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