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Here is some interesting facts regarding Uber lawsuites. Judge has asked for additional justification in $100 million settelment and wants it by 7/17.
Uber has been hit disproportionately hard in court, but that's hardly surprising, Sundararajan said. Part of the problem is Uber's lukewarm relationship with its drivers - which the company is trying to change with perks like its recently launched quasi union in New York City. But the courtroom showdowns could become an issue for 6-year-old Uber as it continues fundraising, said Paul Boyd, managing partner at ClearPath Capital Partners. Even Uber, with its breakneck growth and massive war chest, isn't immune to the power a lawsuit has to taint a company's image.
"It will make investors question," Boyd said. So far, the company hasn't faced any devastating legal losses. Uber dodged what could have been a major blow in April when it reached a settlement worth up to $100 million to resolve claims that its drivers were entitled to employee benefits such as overtime pay and reimbursement for expenses. (See Above Story) The deal, which is awaiting approval from a San Francisco federal judge, allows the company to avoid a high-profile trial and the expense of reclassifying its drivers as employees - a major win.
The ride-booking platform announced public settlements in at least six cases during the past year, agreeing to shell out up to $163 million. Those deals seem to represent a shift for the company, which originally made a show of fighting litigation tooth and nail, said Joshua Davis, associate dean for academic affairs at the University of San Francisco School of Law. "One possibility is that you're seeing a kind of maturing of the company in a way," he said. "That it is going from sort of a cowboy mentality, if you will, to more of the attitude of an established company."
Uber also pays a massive in-house legal team. A LinkedIn search turned up nearly 50 members around the world, and the company's website lists 24 openings in its legal department. Some lawsuits are backed by Uber's enemies in the taxi industry, who cry foul because Uber doesn't adhere to their regulations. Others target Uber's driver background checks - some argue they are too lax; others claim they dig too deeply. The company also has been accused of failing to protect female passengers from being sexually assaulted by drivers, leaving driver information vulnerable to a data breach, and refusing to accommodate blind passengers' service dogs.
Despite the pending settlement for up to $100 million, the debate over whether Uber drivers should be employees or independent contractors is far from over. Lawyers have filed a string of follow-on suits, and the issue constantly crops up in seemingly unrelated cases.
Some of this litigation has the potential to do serious damage. An antitrust suit in New York, which accuses Uber of illegally fixing the prices its drivers charge instead of allowing them to compete with each other, could be worth more than $1 billion and seeks to upend Uber's pricing model, Davis said. Depending on how the court receives the case, "Uber could be anywhere between just fine and in a whole lot of trouble," he said.
My Take: This is the best and most comprehensive article I've read on Uber's ongoing legal battles. The numbers speak for themselves - 70 lawsuits in federal courts pending, with another 60 already settled. That doesn't count state lawsuits. Yes, Uber is a big target, with deep pockets. But, as the article's author points out, Uber often acts like a bully, and annoys a lot of people. This is the nature of disruption. Only time will tell whether Uber's approach worked.
Uber has been hit disproportionately hard in court, but that's hardly surprising, Sundararajan said. Part of the problem is Uber's lukewarm relationship with its drivers - which the company is trying to change with perks like its recently launched quasi union in New York City. But the courtroom showdowns could become an issue for 6-year-old Uber as it continues fundraising, said Paul Boyd, managing partner at ClearPath Capital Partners. Even Uber, with its breakneck growth and massive war chest, isn't immune to the power a lawsuit has to taint a company's image.
"It will make investors question," Boyd said. So far, the company hasn't faced any devastating legal losses. Uber dodged what could have been a major blow in April when it reached a settlement worth up to $100 million to resolve claims that its drivers were entitled to employee benefits such as overtime pay and reimbursement for expenses. (See Above Story) The deal, which is awaiting approval from a San Francisco federal judge, allows the company to avoid a high-profile trial and the expense of reclassifying its drivers as employees - a major win.
The ride-booking platform announced public settlements in at least six cases during the past year, agreeing to shell out up to $163 million. Those deals seem to represent a shift for the company, which originally made a show of fighting litigation tooth and nail, said Joshua Davis, associate dean for academic affairs at the University of San Francisco School of Law. "One possibility is that you're seeing a kind of maturing of the company in a way," he said. "That it is going from sort of a cowboy mentality, if you will, to more of the attitude of an established company."
Uber also pays a massive in-house legal team. A LinkedIn search turned up nearly 50 members around the world, and the company's website lists 24 openings in its legal department. Some lawsuits are backed by Uber's enemies in the taxi industry, who cry foul because Uber doesn't adhere to their regulations. Others target Uber's driver background checks - some argue they are too lax; others claim they dig too deeply. The company also has been accused of failing to protect female passengers from being sexually assaulted by drivers, leaving driver information vulnerable to a data breach, and refusing to accommodate blind passengers' service dogs.
Despite the pending settlement for up to $100 million, the debate over whether Uber drivers should be employees or independent contractors is far from over. Lawyers have filed a string of follow-on suits, and the issue constantly crops up in seemingly unrelated cases.
Some of this litigation has the potential to do serious damage. An antitrust suit in New York, which accuses Uber of illegally fixing the prices its drivers charge instead of allowing them to compete with each other, could be worth more than $1 billion and seeks to upend Uber's pricing model, Davis said. Depending on how the court receives the case, "Uber could be anywhere between just fine and in a whole lot of trouble," he said.
My Take: This is the best and most comprehensive article I've read on Uber's ongoing legal battles. The numbers speak for themselves - 70 lawsuits in federal courts pending, with another 60 already settled. That doesn't count state lawsuits. Yes, Uber is a big target, with deep pockets. But, as the article's author points out, Uber often acts like a bully, and annoys a lot of people. This is the nature of disruption. Only time will tell whether Uber's approach worked.
