Shareholders sue Uber board over safety, compliance failures

The complaint, filed in a California federal court, accuses Uber's management of knowingly cutting corners in the name of company growth and prioritizing cost-cutting measures over safety initiatives. The lawsuit highlights thousands of sexual assault claims against Uber drivers and asserts that the board caused the company to engage in unlawful conduct, leading to significant litigation costs, regulatory scrutiny, and reputational damage.

According to the lawsuit, Uber considered safety measures such as in-car cameras and more rigorous background checks but either implemented them after delays or rejected them. The complaint specifically states that Uber declined to add cameras to drivers' vehicles around 2017 because it would have implied greater control over drivers, weakening the argument that they are independent contractors. CEO Dara Khosrowshahi, who succeeded Travis Kalanick, is accused of making only cosmetic changes to compliance practices and workplace culture.

An Uber spokesperson stated that the lawsuit ignores important facts and is based on misleading narratives from other meritless lawsuits, adding that safety incidents are "exceptionally rare" on its app and the company is "constantly working to make every trip safer."