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Uber facing hefty lawsuit in Toronto, less than a month after being cleared

Another week, another negative Uber story.

The taxi app is facing a multi-million dollar lawsuit in Canada, with Toronto-based taxi companies claiming that its UberX and UberXL services have created an “enormous marketplace for illegal transportation” in the city.

Sutts, Strosberg LLP filed the lawsuit, naming taxi driver Dominic Konjevic the plaintiff. The law firm says that the case represents all taxi drivers and companies in Ontario, though they can choose not to be involved if the case goes to court.

The drivers are after C$400 million (£198 million) in compensatory damages, as well as C$10 million (£5 million) in punitive damages.

They’re also seeking an injunction that would put an end to Uber‘s Ontario operations.

The lawsuit accuses Uber drivers of breaching section 39.1 of the Highway Traffic Act, which would mean they aren’t in fact legally allowed to accept payment for driving passengers to a specific destination.

 “We are alleging that UberX and UberXL … are in fact blatantly in contravention of the Ontario Highway Traffic Act, and detrimental to the ongoing business interests of every taxi and limousine operator in the province,” said Sutts, Strosberg LLP’s Jay Strosberg.

Uber has been dogged by controversy wherever it’s launched, and the company being typically bullish about the latest spot of bother it finds itself in.

“Uber is operating legally and is a business model distinct from traditional taxi services,” a spokeswoman told Reuters.

Earlier this month, a provincial court rejected the city’s bid to stop Uber’s services in Toronto earlier this month, citing there was no evidence it operated as a taxi broker.

It suspended its UberPOP service in France at the start of July, following fierce criticism from Prime Minister Manual Valls.

SEE ALSO: Uber is delivering free ice cream in the UK right now

On a lighter note, the company’ is delivering free ice cream across UK cities today. Follow the link above to see how to claim your frozen treat.

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