Uber Technologies’ board is facing a lawsuit from shareholders who allege that the company has sacrificed compliance standards, leading to numerous lawsuits concerning sexual assault and harassment. The complaint, filed in San Francisco federal court by shareholders including a Detroit pension fund, claims that the board ignored warnings about Uber’s failure to address sexual abuse by its drivers.
The shareholders also highlighted oversight failures that contributed to two federal lawsuits filed last year. One accused Uber of discriminating against disabled passengers, while the other alleged deceptive practices in the Uber One subscription service. The lawsuit described Uber as a “serial compliance offender” with a damaged reputation due to negative media coverage.
In response, a spokesperson for Uber stated that the lawsuit overlooks key facts and relies on misleading information from previous lawsuits that the company has already addressed. 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 to hold directors accountable for breaches of fiduciary duties and securities law violations, with the potential proceeds benefiting shareholders. CEO Dara Khosrowshahi is named as a defendant, with shareholders criticizing his approach to compliance during his tenure.
According to reports, Uber is currently facing 3,571 lawsuits in San Francisco court related to allegations of sexual misconduct by drivers. Shareholders noted that less than 40 percent of users believe Uber takes safety seriously. Additionally, Uber and Lyft recently sued New York City over a new law they claim would hinder their ability to remove unsafe drivers.
Since reaching its peak on September 22, Uber’s stock price has dropped more than 25 percent.