Uber Accused of Prioritizing Profits Over Compliance and Safety

Uber's management and board of directors are facing a lawsuit led by a Detroit pension fund, which alleges that the company has knowingly cut corners and exposed itself and its shareholders to risk.

Lack of Compliance Culture Cited as Cause of Thousands of Lawsuits

The lawsuit, filed in the U.S. District Court for the Northern District of California, claims that Uber is a "serial compliance offender" that has repeatedly ignored warnings of compliance and safety failures. This lack of compliance culture has led to thousands of lawsuits by victims who have alleged sexual assault and harassment by drivers, according to the complaint.

Plaintiffs Seek Compensation and Stronger Oversight Measures

The plaintiffs want Uber's leaders to personally compensate the company for alleged harm, return certain compensation they received, and implement stronger oversight and compliance measures. The lawsuit names CEO Dara Khosrowshari and claims that board members breached their fiduciary duty to the company and its shareholders.

"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 Responds to Allegations

Uber has pushed back on the accusations in the lawsuit, stating that the suit ignores important facts and is based on misleading, false narratives from other meritless lawsuits. An Uber spokesperson wrote in an emailed statement: "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."

Not Unusual for Companies Like Uber to Face Derivative Lawsuits

Derivative lawsuits, where a shareholder sues the company's directors on behalf of the corporation, are not uncommon for companies like Uber. Shareholders have filed such lawsuits against other companies, including Adobe, Apple, and Intel this year.

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