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Uber board sued over alleged failure to address sexual abuse by drivers
Uber Technologies' board was sued on Monday by shareholders who accused management and directors of letting the ride-sharing company cut corners on compliance, leading to thousands of lawsuits from people alleging sexual assault and harassment.
In a complaint filed in San Francisco federal court, shareholders led by a Detroit pension fund said board members ignored repeated internal and external warnings about Uber's alleged failure to address sexual abuse by drivers.
Shareholders said oversight failures were also a factor in two lawsuits filed last year by the federal government. One accused Uber of routinely refusing to serve disabled passengers, including people with service animals or stowable wheelchairs. The other alleged deceptive billing and cancellation practices in the Uber One subscription service.
Shareholders accuse Uber's board of letting the company cut corners on compliance; Uber says the suit ignores important facts.
"Uber is a serial compliance offender," whose reputation has been "irredeemably damaged" by negative media coverage, the complaint said.
A spokesperson for San Francisco-based Uber said the lawsuit "ignores important facts and is based on misleading, false narratives from other meritless lawsuits that we have already addressed publicly and in the courtroom."
Lawyers for the shareholders, led by the Police and Fire Retirement System of the City of Detroit, did not immediately respond to requests for comment.
Monday's so-called derivative lawsuit seeks to require directors to reimburse Uber for their alleged breaches of fiduciary duties and violations of securities law, with any proceeds benefiting shareholders.
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