Court Orders Uber to Pay $8.5M for Driver Sex Assault Allegations
A U.S. jury has mandated Uber to pay $8.5 million following a landmark ruling in a case involving sexual assault allegations against one of its drivers. This decision is significant as it represents the first trial among more than 3,000 similar lawsuits consolidated in federal court.
Court Orders Uber to Pay $8.5M for Driver Sex Assault Allegations
The case was initiated by Jaylynn Dean, who alleged that she was sexually assaulted by an Uber driver when she was just 19 years old. The trial took place in Phoenix, Arizona, where the jury concluded that the driver acted as an agent of Uber, thus making the ride-hailing company liable for his actions.
Details of the Verdict
- Compensatory Damages: The jury awarded Dean $8.5 million.
- Punitive Damages: The jury declined to award punitive damages.
- Plaintiff’s Claim: Dean’s legal team sought over $140 million in damages.
Following the ruling, Uber’s shares fell by 1.5% during after-hours trading, while shares of competitor Lyft also dropped by 1.8%. In response to the verdict, an Uber spokesperson stated that the company plans to appeal. The spokesperson highlighted that the jury rejected other claims, including negligence on Uber’s part related to safety systems.
Concerns Over Safety
Attorney Sarah London, representing Dean, emphasized the ruling carries weight for many survivors of sexual assault. She argued that the verdict reinforces the need for accountability regarding passenger safety. Dean’s lawsuit, filed in 2023, claims that Uber was aware of numerous sexual assault incidents involving its drivers yet neglected to implement essential safety measures.
Uber’s Defense
Uber maintains that its drivers are independent contractors and argues that it cannot be held responsible for criminal actions committed by them. The company points to its background checks as a satisfactory safety measure. During the trial, Uber’s attorney Kim Bueno noted that the driver involved had no criminal history and maintained a high rating based on prior trips.
Ongoing Legal Challenges
U.S. District Judge Charles Breyer oversees the consolidated federal lawsuits against Uber, which also faces over 500 similar cases in California state court. In a previous California trial, a jury sided with Uber, concluding that the company’s negligence did not significantly contribute to the plaintiff’s harm.
Implications of the Ruling
An analyst from Morningstar noted that this verdict might lead to improved background checks among companies like Uber, Lyft, and DoorDash. This decision underscores the critical importance of rigorous safety protocols in ride-hailing and delivery services, where interaction between drivers and customers is pivotal.
As Uber prepares for an appeal, this case will likely influence ongoing and future litigation regarding the company’s safety practices and responsibility towards its riders.