Source: Bloomberg
Summary
A Detroit pension fund has filed a lawsuit against Uber, alleging the company’s board and management have prioritized growth over compliance, leading to thousands of lawsuits. The lawsuit claims that this approach has damaged the company’s reputation and put investors at risk. The pension fund is seeking damages and changes to Uber’s governance.
Our Reading
The announcement sounds ambitious.
Uber’s latest woes are a reminder that “move fast and break things” is not a sustainable business model. Thousands of lawsuits are apparently the cost of doing business. The lawsuit alleges that Uber’s board and management have been playing a game of regulatory whack-a-mole. It’s a familiar script: prioritize growth, apologize later.
Author: Evan Null
