Uber shareholder sues CEO Dara ​Khosrowshahi and other board members, says: Company reputation has been…

Uber Technologies' board of directors, including CEO Dara Khosrowshahi, has been sued by shareholders. According to a Reuters report, the lawsuit accuses the company's leadership of failing to adequately oversee compliance, resulting in legal and reputational challenges for the ride-hailing company.

The derivative lawsuit, filed this week in federal court in San Francisco, was brought by shareholders led by the Police and Fire Retirement System of the City of Detroit. The Reuters report claims that the complaint alleges that Uber directors ignored repeated internal and external warnings regarding the company's handling of sexual assault and harassment complaints involving drivers. "Uber is a serial compliance offender," whose reputation has been "irredeemably damaged" by negative media coverage, the complaint said.The lawsuit seeks to require directors and executives to reimburse Uber for alleged breaches of fiduciary duties and securities law violations, with any recovery benefiting the company and its shareholders.

Allegations against Uber focus on safety and compliance oversight

According to the complaint seen by Reuters, Uber's board failed to properly address concerns related to passenger safety, leading to thousands of lawsuits alleging sexual misconduct by drivers. Shareholders said that as of June 1, Uber was facing 3,571 lawsuits in litigation overseen by a San Francisco court involving claims of sexual assault and harassment.

The complaint also cites two lawsuits filed by the US government last year. One accused Uber of routinely refusing service to disabled passengers, including people travelling with service animals or stowable wheelchairs. Another alleged deceptive billing and cancellation practice related to the company's Uber One subscription service.Shareholders further alleged that Uber's board had been repeatedly informed that fewer than 40% of users believed the company takes safety seriously.

What Uber said about the lawsuit

An Uber spokesperson rejected the claims made in the lawsuit. "The lawsuit ignores important facts and is based on misleading, false narratives from other meritless lawsuits that we have already addressed publicly and in the courtroom,” the spokesperson told Reuters.The complaint names Khosrowshahi among the defendants. Shareholders acknowledged that he had been "less brazen in pushing regulatory limits" than his predecessor during his nearly nine-year tenure as chief executive, but alleged that compliance shortcomings continued under his leadership.The lawsuit comes amid broader scrutiny of ride-hailing companies' safety practices. Earlier this month, Uber and rival Lyft sued New York City over a law they said would make it more difficult to remove drivers who pose safety risks to passengers.