Uber board sued over compliance failures that led to sexual abuse lawsuits
FILE-The Uber app page is displayed on a smartphone in the front of the Uber Technologies, Inc. logo. (Photo by Cheng Xin/Getty Images)
Uber’s board was sued by shareholders who accused management and directors of allowing the company to take shortcuts with compliance, resulting in thousands of lawsuits from victims of sexual assault and harassment.
Reuters obtained a complaint filed in San Francisco federal court stating that shareholders led by a Detroit pension fund alleged Uber board members ignored internal and external warnings regarding the ride-share company’s alleged failure to address sexual abuse by drivers.
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Uber Chief Executive Dara Khosrowshahi is among the defendants in the lawsuit with shareholders claiming that Khosrowshahi would "skimp on compliance."
As of June 1, Uber faced 3,571 lawsuits in litigation overseen in the San Francisco court accusing drivers of sexual misconduct, Reuters reported, citing a document from the United States Judicial Panel on Multidistrict Litigation.
Shareholders stated in the lawsuit that Uber's board was informed that less than 40% of users believe the organization takes safety seriously, Reuters reported.
Uber responds to lawsuit and allegations
What they're saying:
An Uber spokesperson told Reuters that 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."
The Source: Information for this story was provided by Reuters, which received comments from an Uber spokesperson about the lawsuit and allegations, and the document from the United States Judicial Panel on Multidistrict Litigation. This story was reported from Washington, D.C.