NYC TLC License Suspension Settlement ($140M, 2026)

Published June 18, 2026

If your TLC license was suspended after an arrest between 2003 and 2020, you may be in a class set to share $140 million — payments are estimated from a few hundred dollars up to about $36,000.

By Steve Levine

Editor-in-Chief

Status Pending Final Approval

Claim Deadline Not yet set Set after the court grants final approval

Estimated Payout $263 – $36,000 Pro rata by days suspended · from a $140M fund

Proof Required No Signed claim form (attestation) · no receipts · W-9 to get paid

What Is This Settlement About?

The City of New York has agreed to pay $140 million to resolve a long-running class action over the way the New York City Taxi and Limousine Commission (TLC) handled license suspensions. The case, Nnebe v. Daus, was filed in 2006 and argued that the TLC summarily suspended the licenses of taxi and for-hire vehicle drivers after a criminal arrest without giving them a constitutionally adequate hearing to contest the suspension. In 2019 the U.S. Court of Appeals for the Second Circuit agreed that the hearings drivers received did not satisfy due process.

The $140 million figure is widely reported as one of the largest payouts of its kind for New York City drivers. The City denies wrongdoing and agreed to the settlement to end the litigation rather than continue contesting individual damages. The settlement covers an estimated 20,000 drivers whose livelihoods were interrupted when their licenses were pulled.

Who Qualifies?

The settlement class is made up of taxi and for-hire vehicle drivers whose TLC license was summarily suspended based on having been arrested on a criminal charge between June 28, 2003 and February 18, 2020. If your license was pulled after an arrest during that window and you were not given a meaningful chance to challenge the suspension before it took effect, you are likely within the class. Drivers within the class generally received a mailed notice with a claim form; if you believe you qualify but did not receive a notice, you can reach the claims administrator through the official settlement website's contact page.

How Much Can You Get?

Payments are allocated pro rata from the $140 million fund based on the total number of days a driver's license was suspended according to TLC's records, and whether the driver previously requested an individual damages hearing. The settlement notice lists the following per-person initial-distribution cap amounts (before deductions for attorneys' fees, expenses, and costs):

Total days suspended	Initial distribution cap
25 days or fewer	$700
26 – 31 days	$750
32 – 60 days	$21,000
61 – 90 days	$24,000
91 – 120 days	$27,000
121 – 210 days	$30,000
211 – 390 days	$33,000
391 days or more	$36,000
No suspension end date	$17,000
Did not request a damages hearing	37.5% of the amount above

Drivers who did not previously request an individual damages hearing receive 37.5% of the figure for their suspension length — so the lowest awards start around $263 (37.5% of $700), and the highest reach $36,000. Multiple suspensions in the class period are added together, though any single suspension shorter than 32 days is not counted toward the cumulative total. Final amounts depend on how many valid claims are filed and on certain legally required deductions (for example, overdue child support or docketed NYC parking judgments), and a second distribution of unclaimed funds is possible. No driver needs to pay anything to participate.

Current Status — Why Claims Are Not Open Yet

This settlement is not yet final. The court held the final approval hearing on August 13, 2025, and the parties are awaiting the court's final approval order. Until that order is entered, no claim deadline is in effect and payments cannot be distributed. The most reliable way to track the case is to watch the official settlement website and keep any notice and claim form you received in the mail. Once the court approves the settlement, the administrator will set and publish the claim deadline.

How to File a Claim

When the claim period opens, eligible drivers will be able to file in two ways: by completing and signing the paper claim form (the copy mailed with the notice, or a copy downloaded from the official settlement website) and returning it by U.S. mail, fax, or email; or by submitting a claim online. The online portal asks for a Claim Login ID and PIN printed on the mailed notice, but the paper claim form can be filed without that code — it asks only for your name, address, TLC license number (if known), date of birth, and a signed attestation that your license was suspended after an arrest during the class period. For that reason no receipts or documentation are required and this page is marked Proof Required: No. To actually receive payment after final approval, a class member also submits a City of New York Substitute Form W-9. If you lost your notice or never received one, use the contact page on the official settlement website to reach the claims administrator rather than paying any third party that offers to "file for you."

Frequently Asked Questions

Who qualifies for the NYC TLC license-suspension settlement?

The class covers taxi and for-hire vehicle drivers whose TLC license was summarily suspended based on a criminal arrest between June 28, 2003 and February 18, 2020. An estimated 20,000 drivers fall within the class.

How much money can a driver receive?

Individual payments are estimated between roughly $263 and $36,000 from the $140 million fund. The amount depends on the total number of days a driver's license was suspended and whether the driver pursued an individual damages hearing.

Is the settlement final and are claims open?

Not yet. The court held the final approval hearing on August 13, 2025, and the parties are awaiting the court's final approval order. No claim deadline has been set. Payments cannot be distributed until the court grants final approval.

Is proof required to file a claim?

No receipts or documentation are required. The online portal asks for a Claim Login ID and PIN from the mailed notice, but the paper claim form can be filed without that code — it asks only for your name, address, TLC license number (if known), date of birth, and a signed attestation. A City of New York Substitute Form W-9 is needed to receive payment. Drivers who never received a notice can contact the claims administrator through the official settlement website's contact page.

What should I do right now?

Keep the notice you received and watch the official settlement website for the claim deadline, which will be set once the court grants final approval. You do not need to pay anyone to participate in a class action settlement.

Sources

Official Settlement Notice

The official court-approved notice and claim form for Nnebe v. Daus, including the full payment table, release language, and objection/opt-out instructions:

For more class actions keep scrolling below.

Settlement Amount $140,000,000

Case Title Nnebe v. Daus

Case Number 1:06-cv-04991-RJS

Court U.S. District Court, Southern District of New York

Final Approval Hearing August 13, 2025 Held; awaiting the court's final approval order

Official Website TLC Suspension Claims.com