Dara Khosrowshahi faces a new legal challenge. A Detroit pension fund has filed a shareholder lawsuit accusing the Uber CEO and his board of prioritizing profits over safety.
The complaint, filed Monday in U.S. District Court in San Francisco, alleges Uber is a "serial compliance offender" that has deliberately cut corners on safety. Thousands of lawsuits from victims alleging sexual assault and harassment by drivers have followed.
According to the lawsuit, Khosrowshahi and board members breached their fiduciary duty by ignoring repeated warnings about compliance and safety failures. The plaintiffs seek personal compensation from the executives, return of certain compensation they received, and stronger oversight measures.
The complaint names sexual assault and harassment victims, customers with disabilities, and consumers who signed up for Uber One as those harmed by the company's compliance lapses.
Uber disputes the claims. "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," an Uber spokesperson said.
Uber is not alone. Adobe, Apple, and Intel have all faced similar derivative lawsuits this year, indicating shareholder concern about corporate safety lapses across Silicon Valley.
The lawsuit could expose Khosrowshahi to personal liability and significant financial consequences. The case will test whether courts view safety compliance failures as a breach of board fiduciary duty.
