A federal jury found Uber liable for a driver’s sexual assault, awarding $8.5 million in a landmark case that could impact thousands of similar lawsuits.
PHOENIX: A federal jury ordered Uber to pay $8.5 million on Thursday after finding the ride-hailing giant liable for a driver’s sexual assault of a passenger.
The verdict in the Phoenix trial marks a significant legal setback for Uber, which faces over 3,000 similar lawsuits consolidated in US federal court.
Plaintiff Jaylynn Dean’s case was the first “bellwether” trial for these consolidated claims. Such trials are used to test legal arguments and gauge potential settlement values for the remaining lawsuits.
The jury determined the driver was an agent of Uber, making the company responsible for his actions. It awarded Dean $8.5 million in compensatory damages but declined to award punitive damages, which her attorneys had sought over $140 million.
An Uber spokesperson said the company plans to appeal, noting the jury rejected claims of company negligence or defective safety systems. “This verdict affirms that Uber acted responsibly and has invested meaningfully in rider safety,” the spokesperson stated.
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.”
Dean, an Oklahoma resident, sued Uber in 2023, one month after her alleged assault in Arizona. Her lawsuit argued Uber was aware of a wave of sexual assaults by its drivers but failed to take basic actions to improve rider safety.
During closing arguments, Dean’s attorney Alexandra Walsh said Uber marketed itself as a safe option for women. “They made us believe that this was a place that was safe from that,” Walsh told the jury.
Uber has consistently argued it should not be held liable for criminal conduct by drivers, who it classifies as independent contractors. The company maintains its background checks and safety disclosures are sufficient.
“He had no criminal history. None,” said Kim Bueno, an attorney for Uber, of the driver during closing arguments. “Was this foreseeable to Uber? And the answer to that has to be no.”
Dean’s lawsuit alleged she was intoxicated when she hired the Uber. The driver asked harassing questions before stopping the car and raping her, according to the filing.
The case was overseen by US District Judge Charles Breyer, who is managing all similar federal lawsuits against Uber from his San Francisco court. Uber shares fell 0.5% in extended trading following the verdict.
The company also faces more than 500 similar cases in California state court. In the only one of those to go to trial so far, a jury sided with Uber last September.
Rival Lyft is facing similar lawsuits in state and federal court, though its claims are not part of a coordinated federal litigation. Lyft shares were down 1% after the verdict. – Reuters
