Shareholders are suing Uber’s board over sexual assaults and other incidents

A lawsuit filed by a Detroit pension fund accuses Uber’s management and board of putting profits before compliance and safety, decisions that put the company and its shareholders at risk.

The lawsuit, filed Monday in the U.S. District Court for the Northern District of California in San Francisco, alleges that Uber is a “serial compliance violator” who “knowingly” crossed the line. This lack of a culture of compliance has led to thousands of lawsuits by victims alleging sexual assault and harassment by drivers, according to the complaint.

The lawsuit, which names CEO Dara Khosrowshahi, alleges that board members breached their fiduciary duty to the company and its shareholders by ignoring repeated warnings about compliance and safety failures. The plaintiffs want Uber’s leaders to personally compensate the company for the alleged harm, return some of the compensation they received, and implement stronger oversight and compliance measures.

“Victims of this culture of lack of compliance include victims of sexual assault and harassment, customers with disabilities, and unwary consumers looking to sign up for Uber One,” the complaint said.

Uber responded to the accusations in the lawsuit.

“This lawsuit ignores important facts and is based on misleading and false narratives from other baseless lawsuits that we have already addressed publicly and in the courtroom,” an Uber spokesperson wrote in an emailed statement.

It is not unusual for companies like Uber to face derivative lawsuits, when a shareholder sues company directors on behalf of the company. For example, shareholders filed such lawsuits against Adobe, Apple, and Intel this year.