An order from the Northern District of California last week appointed lead plaintiff and lead counsel in a securities class action against Uber and its executives over recent revelations that supposedly spurred a share price decline. The Rosen Law Firm P.C. will lead the action while the man appointed lead plaintiff has the greatest alleged financial loss of the plaintiffs, at more than $2 million.
The suit alleges that Uber’s stock price fell this autumn when the “Uber Files,” a cache of several hundred thousand documents reported on by major news outlets, came to light. According to the complaint, leaked documents showed that Uber secretly lobbied and paid off foreign governments, as well as sacrificed driver safety for company growth.
The complaint also notes that Uber’s most recent stumble comes after years of “scandal,” including forced management and corporate culture overhaul. Additionally, this summer, anonymous female passengers sued the ride-hailing company over assaults by drivers.
The securities complaint states claims for relief against Uber and its executives under the securities law’s anti-fraud provisions and seeks to certify a class of investors who lost money after the share price fell.
In last week’s opinion, Judge Yvonne Gonzalez Rogers considered the matter of class leadership. The three-page order found, after confirming the plaintiff’s bid for lead appointment, that his choice of counsel was sound. Noting the law firm’s “significant experience litigating securities class actions,” the court deferred to the litigant’s choice and appointed the firm to leadership.
Looking ahead, the court asked for a joint proposed schedule concerning the filing of an amended pleading or a proposed time for the defendants’ response to the currently-filed complaint.
Uber is represented by Shearman & Sterling.
