Uber Technologies’ board is facing a lawsuit from shareholders alleging negligence in compliance matters, resulting in numerous lawsuits regarding sexual assault and harassment. The shareholders, including a Detroit pension fund, claim that the board disregarded warnings about Uber’s failure to address sexual abuse by drivers. Additionally, they argue that oversight failures played a role in two federal lawsuits against Uber, one involving discrimination against disabled passengers and the other related to deceptive billing practices in the Uber One subscription service.
The complaint describes Uber as a repeat offender in compliance matters, with a damaged reputation due to negative media coverage. In response, a spokesperson for Uber stated that the lawsuit is based on misleading information from previous lawsuits that have been addressed publicly and in court. The shareholders, represented by the Police and Fire Retirement System of the City of Detroit, seek reimbursement for alleged breaches of fiduciary duties and securities law violations, with proceeds benefiting shareholders.
The lawsuit names Chief Executive Dara Khosrowshahi as a defendant, with shareholders criticizing his approach to regulatory compliance during his tenure. Notably, Uber is currently facing over 3,500 lawsuits in San Francisco court related to allegations of sexual misconduct by drivers. Shareholders highlighted concerns that a significant portion of users doubt the company’s commitment to safety. Furthermore, Uber and Lyft recently filed a lawsuit against New York City to challenge a new law that they claim hinders their ability to remove unsafe drivers.
Uber’s stock price has declined by more than 25% since its peak in September last year.
