Uber Technologies’ (UBER.N), board was sued on Monday by shareholders who accused management and directors of letting the ride-sharing company cut corners on compliance, leading to thousands of lawsuits from victims of sexual assault and harassment.
In a complaint filed in San Francisco federal court, shareholders led by a Detroit pension fund said board members ignored repeated internal and external warnings about Uber’s alleged failure to address sexual abuse by drivers.
Shareholders said oversight failures were also a factor in two lawsuits last year by the federal government.
One accused Uber of routinely refusing, opens new tab to serve disabled passengers, including people with service animals or stowable wheelchairs. The other alleged deceptive billing and cancellation practices in the Uber One subscription service.
“Uber is a serial compliance offender,” whose reputation has been “irredeemably damaged” by negative media coverage, the complaint said.
A spokesperson for San Francisco-based Uber said 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.”
Lawyers for the shareholders, led by the Police and Fire Retirement System of the City of Detroit, did not immediately respond to requests for comment.
Monday’s so-called derivative lawsuit seeks to require directors to reimburse Uber for their alleged breaches of fiduciary duties and securities law violations, with proceeds benefiting shareholders.