Uber beats lawsuit claiming its scandals led to investor losses – CNET
Uber and its former boss won a lawsuit claiming the company hid scandals that led to investors losing billions.
A Irving, Texas-based firefighter pension fund filed class action claims against the ride-hailing company and its ex-CEO Travis Kalanick, but a California judge ruled that the claims should be tossed Friday, Bloomberg reports.
The lawsuit "does not specifically tie any particular misrepresentation by defendants to a decline in Uber's stock price," US District Judge Haywood S. Gilliam Jr. wrote in his ruling.
It "lumps together" scandals and makes "vague and attenuated connection" to the fall in Uber's stock, Gilliam noted.
The judge allowed the fund to revise and refile the complaint. It alleged that Uber and Kalanick hide at least six instances of malfeasance while "successfully soliciting billions of dollars in private investment."
Kalanick stepped down in June 2017 after an independent investigation recommended that changes to senior leadership were needed to mitigate a wave of scandals. He was replaced that August by Dara Khosrowshahi, who has taken a more diplomatic approach to leading the company.
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