Uber Technologies, Inc.

Case Details

Class Period: May 31, 2019 - July 8, 2022
Date Filed: August 16, 2022
Case Number: 4:22cv04688
Jurisdiction: California Northern District Court
icon-casetype Case Type: Securities Case
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Case Summary

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The Company connects consumers with providers of ride services, and connects riders and other consumers with restaurants, grocers, and other stores with delivery service providers for meal preparation, grocery, and other delivery services. Uber has long been plagued by scandal. As the Company’s Senior Vice President of Marketing and Public Affairs recently stated: “There has been no shortage of reporting on Uber’s mistakes prior to 2017. Thousands of stories have been published, multiple books have been written, there’s even been a TV series.” These “mistakes” ranged from allegations of Uber executives knowingly concealing incidents of violence and sexual assault by its drivers, operating illegally in various jurisdictions, and utilizing software to evade authorities and block their access to the Company’s databases. Following years of negative publicity, Uber made changes to its top management, purportedly reformed its corporate culture, and touted itself as a new company that had atoned for its prior compliance and cultural issues. However, unbeknownst to investors, the Company and its top management had still not transparently divulged and accounted for the full scope of the Company’s prior misconduct. The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding Uber’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Uber had defective disclosure controls and procedures; (ii) Uber concealed and/or downplayed the full scope and severity of its prior misconduct, including, inter alia, the extent to which it secretly lobbied government officials and politicians to bypass legal and regulatory requirements, as well as knowingly risked the safety of Uber drivers, to fuel the Company’s global growth; (iii) as a result, Uber’s present global footprint and market share is in significant part the byproduct of previously undisclosed, unsustainable, and illegal business practices; (iv) all the foregoing, once revealed, was likely to negatively impact Uber’s reputation, as well as subject the Company to a heightened risk of governmental and regulatory scrutiny and enforcement action; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times. On Sunday, July 10, 2022, news reports emerged regarding a cache of 124,000 internal Uber records, dubbed the “Uber Files” by media outlets, spanning from 2013 to 2017, that were leaked to The Guardian and subsequently shared with the International Consortium of Investigative Journalists and other news outlets. These files revealed, among other things, how Uber secretly met with various government officials and politicians to skirt laws and regulations around the world, as well as risked Uber drivers’ safety, to advance the Company’s growth, and how all the foregoing conduct was known to, and in fact encouraged by, the Company’s top management. On this news, Uber’s stock price fell $1.15 per share, or 5.15%, to close at $21.19 per share on July 11, 2022.