Overview
- Shareholders led by the Police and Fire Retirement System of the City of Detroit filed a derivative lawsuit in the U.S. District Court in San Francisco on Monday that names CEO Dara Khosrowshahi and multiple board members.
- The complaint calls Uber a “serial compliance offender” and links board oversight failures to thousands of rider claims alleging sexual assault and harassment, citing 3,571 pending related lawsuits in the San Francisco litigation as of June 1.
- Plaintiffs seek rebilling of directors and executives to reimburse the company, return of certain compensation, and court-ordered governance and compliance reforms to strengthen oversight of safety practices.
- Uber has rejected the filing as misleading and said it relies on false narratives from other meritless suits while arguing safety incidents are exceptionally rare and have been publicly addressed.
- The suit cites prior federal enforcement over disability access and deceptive billing and comes as Uber faces investor and regulatory pressure and a share-price decline that investors say reflects rising legal and reputational risk.