Uber Shareholders File Lawsuit Against Board Over Safety Oversight and Assault Claims

A shareholder lawsuit, led by a Detroit pension fund, accuses Uber’s senior leadership and board of directors of prioritising profits over safety and regulatory compliance, alleging that these decisions have exposed both the company and its shareholders to significant legal and financial risks.

The lawsuit, filed on Monday in the U.S. District Court for the Northern District of California in San Francisco, describes Uber as a “serial compliance offender” that allegedly “knowingly” cut corners on compliance requirements. According to the complaint, this approach contributed to thousands of lawsuits filed by individuals who have accused Uber drivers of sexual assault and harassment.

The legal action names CEO Dara Khosrowshahi and alleges that members of Uber’s board breached their fiduciary responsibilities by failing to respond to repeated warnings about compliance shortcomings and safety concerns. The plaintiffs are seeking to require the company’s leadership to reimburse Uber for the alleged damages personally, return certain executive compensation, and implement stronger oversight and compliance practices.

“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 states.

Uber rejected the allegations outlined in the lawsuit.

In a statement provided by email, an Uber spokesperson said the lawsuit ignores important facts and relies on misleading and inaccurate narratives drawn from other lawsuits that the company says it has already addressed publicly and in court.

Derivative lawsuits of this nature are relatively common among publicly traded companies, allowing shareholders to pursue legal action against directors on behalf of the corporation itself. Similar shareholder lawsuits have also been filed this year against companies including Adobe, Apple, and Intel.