On the Dash:
- Uber shareholders sued the company’s board over alleged failures to address safety and compliance risks.
- The complaint points to thousands of sexual misconduct lawsuits and federal claims involving disabled passengers.
- Shareholders are looking to hold directors and executives financially responsible for alleged oversight failures.
Uber Technologies’ board is facing a shareholder lawsuit accusing company leadership of allowing compliance failures that contributed to thousands of sexual assault and harassment claims involving drivers.
According to Reuters, the complaint was filed Monday in San Francisco federal court by shareholders led by the Police and Fire Retirement System of the City of Detroit. The lawsuit alleges Uber’s management and directors ignored repeated internal and external warnings about the company’s handling of driver misconduct, rider safety and violations of federal disability law.
The complaint also cites lawsuits filed last year by the federal government, which accused Uber of refusing service to disabled passengers, including people with service animals or stowable wheelchairs, while also engaging in deceptive billing and cancellation practices.
As of June 1, Uber faced over 3,000 lawsuits in litigation overseen by the San Francisco court, accusing drivers of sexual misconduct, according to the Lawsuit Information Center.
Reputation and oversight under scrutiny
Shareholders claim Uber’s reputation has been severely damaged by the allegations and negative media coverage. The complaint states that Uber’s board was repeatedly told fewer than 40% of users believe the company takes safety seriously.
The lawsuit describes Uber as a “serial compliance offender” and argues that leadership failed to invest enough in compliance even after years of warnings. The case was filed as a derivative lawsuit, meaning shareholders are suing on behalf of Uber itself. The complaint seeks to require directors and executives to reimburse the company for alleged breaches of fiduciary duty and violations of federal securities laws.
Uber CEO Dara Khosrowshahi is among the defendants.
