Shareholder lawsuit targets Uber board over safety lapses

A major shareholder lawsuit filed this week accuses Uber Technologies' board and top executives of fostering a culture that prioritized growth over passenger safety and legal compliance, exposing the company to massive financial and reputational damage. The derivative complaint, filed in federal court in San Francisco by the Police and Fire Retirement System of the City of Detroit, names CEO Dara Khosrowshahi, ten directors, and three other officers as defendants.

The lawsuit alleges these leaders repeatedly ignored internal and external warnings about driver misconduct, leading to what the filing describes as a "tone of noncompliance from the top." It claims Uber became a "serial compliance offender," with oversight failures directly contributing to thousands of pending lawsuits. Central to the case are more than 3,000 consolidated federal lawsuits in San Francisco from victims alleging sexual assault and harassment by drivers. The complaint states the board was aware of these systemic risks yet chose to underinvest in safety to accelerate expansion.

The legal exposure extends beyond assault claims. The lawsuit highlights related federal actions, including a Justice Department...