Investors Take Legal Action Against Uber’s Board Amid Sexual Assault Allegations and Related Incidents
A lawsuit initiated by a pension fund in Detroit claims that Uber’s management and board prioritized profits over safety and compliance, which ultimately put the company and its investors at risk.
The legal action, submitted on Monday in the Northern District of California, describes Uber as a company that habitually disregards compliance requirements. The suit argues that this pattern of behavior has led to numerous lawsuits from victims of alleged sexual assault and harassment by drivers.
The complaint, which lists CEO Dara Khosrowshahi among the defendants, accuses board members of failing in their fiduciary responsibilities to the company and its shareholders by ignoring consistent warnings about compliance and safety issues. The plaintiffs are seeking personal accountability from Uber’s executives, requesting restitution for damages and stronger regulatory oversight.
“The victims affected by this culture of non-compliance include those who have experienced sexual assault and harassment, customers with disabilities, and everyday consumers interested in services like Uber One,” the filing states.
In response to the allegations, Uber has defended itself against the claims made in the lawsuit.
“This lawsuit overlooks critical aspects and relies on misleading and false narratives stemming from other unfounded legal actions we have already addressed publicly and through the court,” an Uber representative stated in an email.
It is not uncommon for corporations, including Uber, to encounter derivative lawsuits, where shareholders take legal action against the company’s directors in the interest of the corporation. This year, similar lawsuits have been filed against major companies like Adobe, Apple, and Intel.
