A Lyft Glowstache sits on the dashboard of a car in San Francisco on Feb. 03, 2016. (Josh Edelson/AP Images for Lyft)

(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.

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