Uber Technologies is facing a lawsuit from shareholders alleging that the company’s management and directors allowed compliance shortcuts, resulting in numerous lawsuits related to sexual assault and harassment. The shareholders, led by a Detroit pension fund, filed a complaint in San Francisco federal court, claiming that the board ignored warnings about Uber’s failure to address sexual abuse by drivers.
The oversight failures were also linked to federal lawsuits accusing Uber of discriminating against disabled passengers and deceptive practices in their subscription service. The complaint described Uber as a “serial compliance offender” whose reputation has been severely damaged by negative media coverage.
In response, a spokesperson for Uber refuted the lawsuit’s claims, stating that they are based on misleading information and false narratives from previous lawsuits. The lawsuit, filed by the Police and Fire Retirement System of the City of Detroit, aims to hold directors accountable for alleged breaches of fiduciary duties and securities law violations.
The lawsuit targets Chief Executive Dara Khosrowshahi among others, criticizing him for not adequately addressing compliance issues during his tenure. Uber has faced over 3,500 lawsuits accusing drivers of sexual misconduct, with shareholders highlighting concerns about safety perception among users.
Recently, Uber and Lyft took legal action against New York City to challenge a new law that they believe could hinder their ability to remove problematic drivers. Uber’s stock price has declined by more than 25% since reaching its peak in September last year.