Detroit pension fund sues Uber board over safety and compliance failures

A Detroit pension fund has taken aim at Uber’s board, accusing directors of letting safety and compliance failures metastasize into thousands of lawsuits and a deeper governance crisis. The suit says the problem is not just misconduct by drivers or isolated billing complaints, but board-level oversight choices that left Uber exposed across multiple fronts.

The derivative complaint, filed Monday in San Francisco federal court by shareholders led by the Police and Fire Retirement System of the City of Detroit, names Chief Executive Dara Khosrowshahi among the defendants. It seeks to make directors reimburse Uber for alleged breaches of fiduciary duties and securities law violations, a structure that puts investor losses and board accountability at the center of the case rather than individual damages alone.

Shareholders say the board ignored repeated internal and external warnings that Uber had failed to address sexual abuse by drivers. They also tie those oversight lapses to two federal government lawsuits filed last year, one over refusing service to disabled passengers, including riders with service animals or stowable wheelchairs, and another over deceptive billing and cancellation practices in the Uber One subscription service. The filing argues that these failures were part of a broader compliance culture, not separate accidents.

The scale of Uber’s legal exposure is now difficult to dismiss. As of June 1, the company faced 3,571 lawsuits in federal litigation in San Francisco alleging driver sexual misconduct. Shareholders said fewer than 40% of users believe Uber takes safety seriously, a figure that underscores the reputational damage tied to the company’s handling of these claims.

Uber pushed back sharply, saying the lawsuit “ignores important facts” and relies on “misleading, false narratives” from other meritless lawsuits the company says it has already addressed publicly and in court. Still, the board’s legal troubles have only grown heavier with courtroom losses. A Phoenix jury awarded $8.5 million in February 2026 in the first bellwether trial over an alleged sexual assault, followed by a $5,000 verdict in Charlotte in April 2026 in a second case.

The shareholder suit also lands as Uber’s market value has come under pressure. Its share price has fallen by more than 25% since peaking on September 22, 2025, leaving investors to ask whether regulators, courts and public criticism were not enough to force stronger risk controls. For Uber, the new fight is no longer just about liability; it is about whether the board failed at the basic job of preventing it.