Shareholders Sue Uber's Board Over Sexual Assaults and Other Incidents
A lawsuit led by a Detroit pension fund accuses Uber's management and board of prioritizing profits over compliance and safety, exposing the company and shareholders to risk.
A Detroit pension fund has filed a lawsuit against Uber's management and board, alleging they knowingly ignored safety and compliance issues in pursuit of higher profits. The complaint was filed Monday in the U.S. District Court for the Northern District of California in San Francisco. It describes Uber as a "serial compliance offender" that has "knowingly" cut corners.
According to the suit, this lack of compliance culture has resulted in thousands of lawsuits from victims who claim they were sexually assaulted or harassed by Uber drivers. The lawsuit names CEO Dara Khosrowshahi and board members, accusing them of breaching their fiduciary duty to the company and its shareholders. The plaintiffs seek personal compensation from the leaders for alleged harm, return of certain compensation, and implementation of stronger oversight and compliance measures.
"The victims of this lack of compliance culture include sexual assault and harassment victims, customers with disabilities, and unwary consumers looking to subscribe to Uber One," the complaint reads.
Uber pushed back against the allegations. "This suit ignores important facts and is based on misleading, false narratives from other meritless lawsuits that we have already addressed publicly and in the courtroom," a spokesperson said in an emailed statement.
Such derivative lawsuits, where a shareholder sues a company's directors on behalf of the corporation, are not uncommon. This year, shareholders have filed similar suits against Adobe, Apple, and Intel.
