Uber is facing a fresh legal challenge from its own shareholders, who accuse the company’s leadership of repeatedly failing to enforce compliance standards, a pattern they say exposed the ride-hailing giant to thousands of lawsuits involving sexual assault, harassment, and other misconduct claims.
The lawsuit, filed in federal court in San Francisco, alleges that Uber’s board and senior executives overlooked numerous warning signs regarding driver-related abuse and broader regulatory concerns. According to the complaint, directors failed to act despite receiving repeated alerts from both internal sources and outside parties about risks tied to passenger safety.
Shareholders leading the case argue that these oversight failures contributed not only to a growing wave of sexual misconduct litigation but also to government enforcement actions brought against the company. Federal authorities previously accused Uber of discriminating against disabled passengers, including riders accompanied by service animals or those using foldable wheelchairs. Another government lawsuit targeted the company’s Uber One membership program, alleging deceptive billing and cancellation practices.
The complaint paints a picture of a company that allegedly treated compliance as an afterthought while prioritizing growth. Shareholders claim Uber developed a reputation as a repeat offender when it came to regulatory obligations, resulting in extensive legal exposure and reputational damage.
Uber has strongly rejected the allegations. A company spokesperson said the lawsuit relies on inaccurate narratives and rehashes claims that have already been challenged by the company in public statements and court proceedings.
The case was brought by a group of investors led by the Police and Fire Retirement System of the City of Detroit. Rather than seeking direct compensation for themselves, the shareholders are pursuing a derivative action, a legal mechanism that seeks to recover losses on behalf of the company. They want directors and executives to reimburse Uber for what they describe as breaches of fiduciary responsibilities and violations of securities laws.
Among the defendants is Chief Executive Dara Khosrowshahi. While the complaint acknowledges that Uber’s leadership style changed after his arrival, shareholders contend that the company continued to underinvest in compliance and oversight efforts during his tenure.
The legal filing highlights the scale of Uber’s ongoing challenges. As of early June, the company was confronting 3,571 lawsuits involving allegations of sexual misconduct by drivers in litigation being coordinated in federal court in San Francisco.
Shareholders further claim that board members were repeatedly informed that a significant portion of users lacked confidence in Uber’s commitment to safety, yet meaningful reforms failed to materialize.
The lawsuit arrives at a time when Uber remains engaged in other regulatory disputes. Earlier this month, Uber and rival Lyft challenged a New York City law they argue would make it harder to remove drivers considered safety risks.
Meanwhile, Uber’s stock has retreated sharply from its high reached last September, adding to the pressure facing company leadership as investors scrutinize governance, safety policies, and regulatory compliance.
