The legal action targets CEO Dara Khosrowshari and other board members, asserting they breached their fiduciary duties by disregarding repeated warnings regarding harassment and sexual assault allegations involving drivers. Plaintiffs are demanding that leadership personally compensate the firm for damages, forfeit specific pay packages, and overhaul internal oversight mechanisms to address these systemic failures.
In section Startups & Technology
Shareholders Target Uber Board Over Systemic Safety Failures
A Detroit pension fund has launched a derivative lawsuit against Uber’s board, alleging that leadership prioritized aggressive expansion over safety protocols. Filed in San Francisco, the complaint accuses executives of fostering a 'serial compliance offender' culture that exposed both the company and its investors to severe legal and financial risks.
Uber has dismissed the claims as meritless, labeling the lawsuit a collection of false narratives that rely on previously litigated cases. While derivative suits against major tech firms—including Apple and Intel—have become increasingly common, this filing highlights the mounting pressure on Uber to reconcile its growth-focused business model with the safety of its customers and the concerns of its shareholders.
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