Uber, the leading global ride-hailing company, has taken a substantial step by reaching an agreement to pay A$271.8 million ($178 million) to resolve a lawsuit filed by Australian taxi operators and drivers. The settlement, ranking as Australia’s fifth-largest, was disclosed on Monday by Maurice Blackburn Lawyers, representing over 8,000 taxi and hire car owners and drivers. They alleged that Uber violated the country’s taxi regulations upon its entry into the market in 2012.

The taxi operators and drivers participating in the class action suit have faced significant challenges. They claim that Uber’s entry into the market disrupted their revenue streams and devalued the value of licenses, resulting in financial losses. Class action lead lawyer Michael Donelly said the Uber X service launched in 2012 to hurt taxis and hire cars by using unlicensed vehicles and unaccredited drivers. “Uber knowingly flouted the law in Australia and deliberately set out to disrupt taxi services,” he said in a statement. “Taxi and hire-car drivers run small, family businesses that have provided generations of Australians with their first jobs and economic foothold.”

Reuters notes that the settlement comes five years after the class action suit was first launched. The case was due for trial this week, but the judge vacated the hearing after Uber agreed to the colossal sum. The settlement is subject to approval from the state Supreme Court of Victoria.

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A lawyer for the class action said the money was divided based on how much the group members had lost due to Uber’s aggressive entry into the market. He declined to comment further because the settlement had yet to be finalized.

In the settlement, Uber did not admit to breaking any laws but said it would abide by future regulations for point-to-point transportation. It also pointed out that ridesharing regulations didn’t exist anywhere in the world when they started over a decade ago, and it made significant contributions to state-level compensation schemes.

The settlement represents a significant legal win for taxi operators and drivers in a series of disputes with Uber that have sprung up over the past several years. It is also notable as it is the first time a ridesharing company has agreed to a global settlement with class action plaintiffs. In previous cases, the companies had denied wrongdoing and fought the claims. The latest settlement comes as Uber faces several significant challenges in many markets worldwide, including regulatory battles and competition from newer services like Lyft and Sidecar. It is also facing a probe by the U.S. Justice Department over its driver-matching technology, and is being investigated for alleged false advertising. It has been forced to rethink its business model in numerous cities and has seen its stock price fall sharply over the last year.