When the ride-hailing company Lyft agreed to settle a proposed class action with its drivers, commentators noted that the tech company was getting off easy. For $12.5 million and some small concessions that did not include classifying drivers as employees, Lyft could have escaped a major challenge to its business model.

Except, just a few months after the deal was struck, a federal judge rejected the settlement, finding the terms unacceptable to both Lyft drivers and the state of California. The parties will have to give settlement negotiations another go if they want to avoid trial.