Uber will pay at least $10m to settle California prosecutors' allegations that the transport company misled passengers over the quality of its driver background checks.
District attorneys in San Francisco and Los Angeles sued in 2014, saying Uber falsely claimed its criminal screening of would-be drivers led the industry.
In fact, prosecutors say, Uber's background checks were inferior to what taxi drivers undergo because they do not include fingerprint checks.
In settling the case, Uber said it has already made many changes prosecutors sought. For example, Uber stopped claiming its background checks were the best available under a different settlement earlier this year.
The settlement was approved by a judge in San Francisco.
The district attorneys' offices said that if Uber does not comply, it would have to pay an additional $15m.