Uber Technologies’ board is facing a lawsuit from shareholders alleging negligence in compliance, leading to numerous lawsuits concerning sexual assault and harassment. Shareholders, including a Detroit pension fund, filed a complaint in San Francisco federal court, claiming that the board disregarded warnings about Uber’s failure to address sexual abuse by drivers. The lawsuit also highlights oversight failures that contributed to federal lawsuits against Uber, one accusing the company of discrimination against disabled passengers and the other alleging deceptive billing practices in the Uber One subscription service.
The complaint describes Uber as a repeat violator of compliance standards, with its reputation irreparably damaged by negative media coverage. In response, a spokesperson for Uber criticized the lawsuit, labeling it as misleading and based on false narratives from previous lawsuits that the company has already addressed publicly and in court. The lawyers representing the shareholders, led by the Police and Fire Retirement System of the City of Detroit, have not yet commented on the matter.
The derivative lawsuit filed on Monday seeks reimbursement from directors for alleged breaches of fiduciary duties and securities law violations, with any recovered funds benefiting shareholders. CEO Dara Khosrowshahi is named as one of the defendants, with shareholders claiming that despite being less aggressive in pushing regulatory boundaries than his predecessor, he has still fallen short on compliance issues during his tenure.
Uber is currently embroiled in 3,571 lawsuits in San Francisco court related to sexual misconduct by drivers. Shareholders pointed out that less than 40 percent of users believe Uber prioritizes safety. Recently, Uber and Lyft took legal action against New York City to challenge a new law that they argue hinders their ability to remove drivers posing safety risks to passengers. The share price of Uber has plummeted by over 25 percent since its peak in September last year.