Uber Technologies Inc. has won a victory against some 160,000 drivers who could potentially have been class members in a suit over the company taking a cut of their tips and keeping them from working as full-time employees with benefits.

The U.S. Court of Appeals for the Ninth Circuit on Tuesday reversed class certification in the case. A panel ruled that the drivers’ reliance on a Georgia case failed to save their suit against Uber’s claim that the matter should go before arbitrators as stated in drivers’ contracts.