Uber ordered to pay woman $8.5M in first trial over driver sex assault claims | Latest Tech News
A federal jury in Phoenix ordered Uber on Thursday to pay $8.5 million after discovering it liable in a lawsuit introduced by a woman who said she was inappropriately assaulted by a driver, a verdict that may affect 1000’s of related circumstances against the ride-hailing company.
The case, introduced by plaintiff Jaylynn Dean, was the first trial – recognized as a “bellwether” – of more than 3,000 related lawsuits against Uber that have been consolidated in federal court. Bellwether trials are used to take a look at legal theories and help gauge the worth of claims for doable settlements.
The jury discovered that the driver was an agent of Uber, so the company was accountable for his actions. They awarded Dean $8.5 million in compensatory damages but declined to award punitive damages. Attorneys for Dean had sought more than $140 million in damages.
The case, introduced by plaintiff Jaylynn Dean, was the first trial – recognized as a “bellwether” – of more than 3,000 related lawsuits against Uber that have been consolidated in federal court. REUTERS
In a assertion, an Uber spokesperson famous that the jury rejected Dean’s other claims, that the company was negligent or that its security systems had been faulty, including that the company plans to appeal. “This verdict affirms that Uber acted responsibly and has invested meaningfully in rider safety,” the spokesperson said.
Sarah London, an attorney for Dean, said the verdict “validates the thousands of survivors who have come forward at great personal risk to demand accountability against Uber for its focus on profit over passenger safety.”
Uber shares fell 0.5% in prolonged trading following announcement of the verdict.
Dean, an Oklahoma resident, sued Uber in 2023, one month after her alleged assault in Arizona. She said Uber was conscious of a wave of inappropriate assaults dedicated by its drivers, but had failed to take basic actions to improve the security of its riders. Such assertions have long dogged the company, drawing headlines and congressional scrutiny.
Alexandra Walsh, an attorney for Dean, said during the trial’s closing arguments that Uber had marketed itself as a secure option for ladies touring at evening, notably if they’d been ingesting.
An Uber spokesperson famous that the jury rejected Dean’s other claims, that the company was negligent or that its security systems had been faulty, including that the company plans to appeal. CEO Dara Khosrowshahi, above. Getty Images
“Women know it’s a dangerous world. We know about the risk of inappropriate assault,” Walsh said. “They made us believe that this was a place that was safe from that.”
Uber says not accountable for driver actions
Uber, which has confronted quite a few security controversies, including allegations of lax driver vetting and a tradition critics said prioritized growth over passenger safety, has argued that it shouldn’t be held liable for felony conduct by drivers who use its platform, saying that its background checks and disclosures about assaults are adequate.
Uber has argued that it shouldn’t be held liable for felony conduct by drivers who use its platform, saying that its background checks and disclosures about assaults are adequate. Diego – stock.adobe.com
The company maintains that its drivers are impartial contractors moderately than staff, and that regardless of their classification it can’t be accountable for actions that fall exterior the scope of what may moderately be thought of their duties.
“He had no criminal history. None,” Kim Bueno, an attorney for Uber, said of the driver during closing arguments, noting that he had 10,000 journeys on the app and a practically good score from riders. “Was this foreseeable to Uber? And the answer to that has to be no.”
Dean’s lawsuit said she was intoxicated when she employed an Uber driver to take her from her boyfriend’s home to her lodge.
The driver requested her harassing questions on the trip before stopping the car and raping her, Dean alleged in the lawsuit.
Uber is also dealing with more than 500 circumstances in California state court. Rival Lyft is dealing with related lawsuits in both state and federal court, Tada Images – stock.adobe.com
US District Judge Charles Breyer, who usually sits on the bench in San Francisco, oversaw Dean’s case in Phoenix. Breyer is managing all of the same federal circumstances against Uber, which have been centralized in his court in San Francisco.
The company is also dealing with more than 500 circumstances in California state court. In the only one of those circumstances to go to trial so far, a jury in September sided with Uber. The jury discovered that while the company had been negligent with its security measures, that negligence was not a substantial issue in inflicting the woman’s hurt.
Uber rival Lyft is dealing with related lawsuits in both state and federal court, although there may be no coordinated federal litigation for those claims. Shares of Lyft had been down 1% after the verdict.
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