Shareholders sue Uber’s board over sexual assaults, other incidents

A Detroit pension fund has initiated a lawsuit against Uber's management and board, alleging that they prioritized profits over safety and compliance, thereby jeopardizing the company and its shareholders. Filed in the U.S. District Court for the Northern District of California, the lawsuit charges Uber with being a 'serial compliance offender' that has knowingly cut corners in its safety practices. The complaint highlights that this negligence has resulted in numerous lawsuits from victims alleging sexual assault and harassment by drivers. Notably, CEO Dara Khosrowshahi is named in the suit, which accuses board members of violating their fiduciary responsibilities by disregarding repeated warnings regarding safety and compliance issues. The plaintiffs are seeking personal financial accountability from Uber’s leadership for the alleged damages incurred by the company. They are also requesting that certain compensations be returned and advocating for enhanced oversight and compliance protocols. The lawsuit emphasizes the broad impact of Uber's compliance failures, affecting not only victims of assault and harassment but also customers with disabilities and unsuspecting consumers. In response to these claims, Uber has refuted the allegations, stating that the lawsuit misrepresents facts and relies on misleading narratives from previous lawsuits they have already addressed. Such derivative lawsuits, where shareholders sue a company’s directors on behalf of the corporation, are not uncommon, with similar actions taken against major companies like Adobe, Apple, and Intel this year.