Shareholders sue – A Detroit pension fund has filed a lawsuit in U.S. District Court in San Francisco accusing Uber’s management and board of putting profits ahead of compliance and safety. The complaint names CEO Dara Khosrowshahi and argues the board ignored repeated warnings,
When a Detroit pension fund filed its complaint, the dispute wasn’t framed as a routine corporate disagreement. It was aimed directly at Uber’s leadership and board, arguing they made decisions that put profits ahead of compliance and safety—leaving the company and its shareholders exposed.
The lawsuit was filed Monday in the U.S. District Court for the Northern District of California in San Francisco. In it, the plaintiffs accuse Uber of being a “serial compliance offender” that has “knowingly” cut corners. The complaint says that lack of a compliance culture has fueled thousands of lawsuits from people who allege sexual assault and harassment by drivers.
The case names CEO Dara Khosrowshahi and claims board members breached their fiduciary duty to Uber and its shareholders by ignoring repeated warnings about compliance and safety failures. The plaintiffs are asking Uber’s leaders to personally compensate the company for alleged harm. return certain compensation they received. and implement stronger oversight and compliance measures.
In the complaint, the plaintiffs describe who they believe is caught in the fallout from the alleged failures: “The victims of this lack of compliance culture include sexual assault and harassment victims, customers with disabilities, and unwary consumers looking to subscribe to Uber One.”
Uber rejected those allegations. In an emailed statement, an Uber spokesperson said: “This suit 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 lawsuit is a derivative action—a type of shareholder case in which shareholders sue directors on behalf of the corporation. Shareholder derivative lawsuits have also been filed this year against other major companies, including Adobe, Apple, and Intel.
Uber Dara Khosrowshahi shareholder lawsuit derivative lawsuit compliance safety sexual assault harassment Uber One Northern District of California fiduciary duty
Uber gets sued again… sounds like they don’t care about safety, just money.
So is this like the same thing as that Uber One thing? I knew it was shady. If they cut corners on compliance, then yeah, figure out what they’re paying Dara.
I’m confused because they say “return certain compensation they received” but also Uber rejected it. Doesn’t that mean they already paid? Also how does a board ignore warnings if there’s literally reporting and stuff… seems exaggerated.
Honestly I don’t trust Uber after all the driver stuff. They mention sexual assault and harassment victims and customers with disabilities and “unwary consumers” like it’s targeted, but then Uber says misleading false narratives?? Like both can’t be true. And why San Francisco court, isn’t Detroit closer to the problem?