Shareholder lawsuit accuses Uber board of ignoring safety failures
7 reported
A lawsuit led by a Detroit pension fund accuses Uber management and its board of prioritizing profits over compliance and safety, decisions that allegedly exposed the company and shareholders to risk. The complaint, filed Monday in the U.S. District Court for the Northern District of California in San Francisco, describes Uber as a “serial compliance offender” that has “knowingly” cut corners. According to the lawsuit, this lack of compliance culture has led to thousands of lawsuits by victims alleging sexual assault and harassment by drivers. The plaintiffs want CEO Dara Khosrowshahi and board members to personally compensate the company for alleged harm, return certain compensation, and implement stronger oversight. Uber denied the accusations, calling the suit based on “misleading, false narratives” from other lawsuits already addressed. The lawsuit is a derivative action, a type of shareholder suit that has also been filed against Adobe, Apple, and Intel this year.
What’s reported
The lawsuit was filed Monday in the U.S. District Court for the Northern District of California in San Francisco.
It is led by a Detroit pension fund.
The complaint alleges Uber is a “serial compliance offender” that has “knowingly” cut corners.
The lawsuit claims the lack of compliance culture has led to thousands of lawsuits by victims alleging sexual assault and harassment by drivers.
The plaintiffs want CEO Dara Khosrowshahi and board members to personally compensate the company, return certain compensation, and implement stronger oversight.
Uber responded that the suit “ignores important facts” and is based on “misleading, false narratives from other meritless lawsuits.”
The lawsuit is a derivative action; similar suits have been filed against Adobe, Apple, and Intel this year.
Key figures
Dara Khosrowshahi (CEO of Uber)
Uber spokesperson (unnamed in the article)
Sources: TechCrunch
