Uber Moves to Disclose Outside Investors in Litigation

Uber has received a lot of bad press in the personal injury sphere. A recent Arizona bellwether trial, involving an Uber driver sexually assaulting a passenger, resulted in a $8.5 million judgment against the rideshare company.¹ New events may add more bad press to the pile.

Uber Seeks Disclosure of Outside Litigation Funding

Uber is seeking to have disclosure requirements for lawsuits funded by outside investors.² Under Uber’s plan, customers or drivers who sue the company will have to disclose those funding arrangements. This is an effort to counteract a rapidly evolving litigation funding industry, where parties agree to fund litigation efforts against companies such as Uber in consideration for a share in settlement or judgment winnings. Uber, joined by several other companies, is lobbying Congress and several State legislatures for statutory changes to curb these practices, but those efforts have stalled.

Uber’s Efforts to Limit Liability

This is evidently an attempt by Uber to limit liabilities resulting from numerous lawsuits arising from Uber drivers assaulting and/or harming customers. An $8.5 million verdict is easily payable by Uber, but the company has a vested interest in stemming the tide of potential litigants. Whether or not these measures will be effective remains to be seen.

A Better Focus: Effective Background Checks

In our view, Uber’s efforts are better directed toward effective background checks.

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