Uber Technologies’ board is facing a lawsuit from shareholders over allegations of negligence in compliance, resulting in numerous lawsuits related to sexual assault and harassment. Shareholders, including a Detroit pension fund, claim that the board disregarded warnings about Uber’s failure to address sexual abuse by drivers. The lawsuit also points out oversight failures that contributed to federal lawsuits against Uber, one for discrimination against disabled passengers and another for deceptive billing practices.
According to the complaint, Uber has a history of compliance issues that have severely tarnished its reputation due to negative media coverage. In response, a spokesperson for Uber dismissed the lawsuit as based on misleading information from previous lawsuits. The lawsuit, filed by shareholders led by the Police and Fire Retirement System of the City of Detroit, seeks reimbursement for alleged breaches of fiduciary duties and securities law violations, with proceeds benefiting shareholders.
CEO Dara Khosrowshahi is named as a defendant in the lawsuit, with shareholders criticizing his approach to regulatory compliance during his tenure. The lawsuit highlights that Uber has faced numerous lawsuits, particularly in San Francisco, related to sexual misconduct by drivers. Shareholders also point out that a significant percentage of users do not believe Uber takes safety seriously.
In recent developments, Uber and Lyft have taken legal action against New York City to contest a new law that they argue hinders their ability to remove unsafe drivers. Uber’s share price has dropped over 25% since reaching a peak in September.