Uber Technologies, Inc. (UBER) Engaged in Illicit and Illegal Conduct to Fuel the Company’s Growth
A shareholder filed a class action on behalf of all persons or entities that purchased or otherwise acquired Uber Technologies, Inc. (NYSE: UBER) securities between May 31, 2019 and July 8, 2022, for violations of the Securities Exchange Act of 1934. Uber 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.
According to the complaint, during the class period, 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 July 10, 2022, news reports announced the discovery of 124,000 internal Uber records spanning from 2013 – 2017, which were leaked to The Guardian and 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, Company’s stock price fell $1.15 per share or over 5%, to close at $21.19 per share on July 11, 2022.
Next Steps: If you acquired shares of Uber Technologies, Inc. between May 31, 2019 and July 8, 2022, you have until October 17, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.