Uber Technologies’ board is facing a lawsuit by shareholders alleging negligence in compliance, resulting in numerous lawsuits for sexual assault and harassment. Filed in a San Francisco federal court, shareholders, led by a Detroit pension fund, claim that board members disregarded warnings about Uber’s failure to address sexual abuse by drivers. The lawsuit also highlights the company’s involvement in government lawsuits related to discrimination against disabled passengers and deceptive billing practices in their subscription service.
The complaint describes Uber as a repeat offender in compliance issues, with a tarnished reputation due to negative media coverage. In response, Uber’s spokesperson stated that the lawsuit is based on misleading narratives from previous meritless lawsuits that have already been addressed. Meanwhile, lawyers for the shareholders, including the Police and Fire Retirement System of the City of Detroit, have not provided any comments.
The derivative lawsuit filed seeks to hold directors accountable for breaches of fiduciary duties and securities law violations, with the aim of benefiting shareholders with any recovered funds. CEO Dara Khosrowshahi is named as a defendant, with shareholders criticizing his approach to compliance during his tenure. Uber currently faces over 3,500 lawsuits related to driver misconduct, with concerns raised about the company’s safety measures.
Recently, Uber and Lyft took legal action against New York City to challenge a new law that they claim would hinder their ability to remove drivers posing safety risks. Uber’s stock price has plummeted by more than 25% since its peak in September 22.
