Uber Lawsuit

Explore the latest on Uber’s legal battles, including major lawsuits, settlements, and unresolved cases that are reshaping gig economy regulations and driver rights.
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Key Takeaways

  1. Uber faces ongoing legal scrutiny from federal and state agencies, as well as private plaintiffs, over issues including deceptive billing, driver compensation, sexual assault allegations, and discrimination.
  2. Major settlements and regulatory actions have resulted in hundreds of millions of dollars in payouts and significant changes to Uber’s business practices.
  3. Many cases remain active or unresolved, and the legal landscape for Uber continues to evolve, with potential implications for gig economy companies and their workers.

Overview of Uber Lawsuits

Uber Technologies, Inc. has been a frequent subject of litigation and regulatory enforcement since its founding. The company’s rapid growth and disruptive business model have led to legal challenges in areas such as consumer protection, labor law, civil rights, and personal injury. This guide provides an overview of the most significant lawsuits and regulatory actions involving Uber, focusing on recent and ongoing cases.

FTC Lawsuit: Deceptive Billing and Cancellation Practices

Background

In April 2025, the Federal Trade Commission (FTC) initiated legal action against Uber, alleging deceptive billing practices related to its Uber One subscription service. According to the FTC, Uber charged consumers for the Uber One subscription without their consent, failed to deliver the promised savings, and made it difficult for users to cancel the service despite advertising a "cancel anytime" policy.

Key Allegations

  • Unauthorized Charges: The FTC claims Uber enrolled consumers in the Uber One subscription and charged them without clear consent.
  • Misleading Savings Claims: Uber allegedly misrepresented the amount of savings customers would receive by subscribing to Uber One.
  • Difficult Cancellation: Despite advertising that users could "cancel anytime," the FTC alleges Uber made the cancellation process unnecessarily complicated.
  • Lack of Disclosure: The lawsuit asserts that Uber did not clearly disclose important information about the auto-renewing nature of the subscription.

Status and Implications

This case is ongoing. The FTC’s press release and updates can be found here. The outcome could set important precedents for subscription-based services and consumer protection standards in the gig economy.

New York State Settlement: Driver Deductions

Background

Uber agreed to a $290 million settlement with the New York State Attorney General to resolve claims that it unlawfully deducted sales tax and Black Car Fund fees from drivers’ earnings. This settlement followed an investigation into Uber’s practices in New York.

Settlement Details

  • Fund for Drivers: The settlement creates a fund for eligible drivers who provided rides in New York State between November 10 and a specified end date.
  • Restitution: The fund is intended to compensate drivers for deductions that should have been paid by Uber, not the drivers themselves.

More information is available at the New York Attorney General’s website.

Class Action Settlement: Driver Fees

Background

Uber has faced class-action lawsuits from drivers alleging improper deductions from their earnings. One significant case resulted in a $290 million settlement.

Settlement Terms

  • Compensation: The settlement provides payments to drivers who were affected by the alleged improper deductions.
  • Scope: The class includes drivers who used Uber’s platform during the relevant period and had fees deducted from their pay.

Details about this settlement can be found here.

Sexual Assault Litigation

Background

Uber has been named in a series of lawsuits related to sexual assault allegations. These cases involve claims by passengers who allege they were sexually assaulted by Uber drivers.

  • Multidistrict Litigation (MDL): Over 200 lawsuits have been consolidated as part of an MDL process.
  • Allegations: Plaintiffs claim Uber failed to adequately screen drivers and did not take sufficient steps to protect passengers.

Status

The litigation is ongoing. These cases are complex and involve sensitive issues of personal safety and corporate responsibility. Updates and more information can be found at the Lawsuit Information Center.

California Wage Theft and Misclassification Lawsuit

Background

The California Labor Commissioner has sued Uber (and Lyft) for allegedly misclassifying drivers as independent contractors rather than employees. The lawsuit claims this misclassification has resulted in wage theft, as drivers were denied benefits and protections afforded to employees.

Key Issues

  • Employee vs. Contractor Status: The classification of drivers affects their eligibility for minimum wage, overtime, and other labor protections.
  • Potential Damages: The case could result in billions of dollars in back pay and damages for thousands of drivers.

Status

This case is ongoing and could have significant implications for Uber and other gig economy companies. More details are available from the California Department of Industrial Relations.

ADA Lawsuit: Discrimination Against People with Disabilities

Background

The U.S. Department of Justice (DOJ) filed a lawsuit against Uber, alleging violations of the Americans with Disabilities Act (ADA). The DOJ claimed Uber overcharged passengers with disabilities by imposing wait time fees, even when delays were due to disability-related needs.

Settlement and Changes

  • Policy Changes: Uber agreed to modify its wait time fee policy to accommodate passengers with disabilities.
  • Financial Settlement: Uber committed to pay millions in settlements to affected individuals.

The DOJ’s press release and settlement details can be found here.

$100 Million Class Action Settlement: Driver Classification

Background

Uber reached a $100 million class-action settlement with drivers, addressing claims related to driver classification and compensation.

Settlement Structure

  • Payments: $84 million was paid to 385,000 drivers, with an additional $16 million contingent on Uber going public.
  • Scope: The settlement resolved claims that Uber misclassified drivers and failed to provide appropriate compensation.

More information is available at the Hera Law Group.

Uber’s legal challenges are not limited to the cases above. The company continues to face scrutiny over its business practices, labor policies, and safety standards. Regulatory agencies and private plaintiffs are actively monitoring Uber’s compliance with consumer protection, labor, and civil rights laws.

Implications for the Gig Economy

The outcomes of these lawsuits and settlements have broader implications for the gig economy. They influence how companies classify workers, design subscription services, and ensure passenger safety. Other gig economy platforms are closely watching these developments.


Conclusion

Uber’s legal landscape is complex and evolving. The company has faced, and continues to face, significant lawsuits and regulatory actions across multiple jurisdictions. These cases address a range of issues, from deceptive billing and driver compensation to serious allegations of sexual assault and discrimination. The outcomes of these cases will shape not only Uber’s future but also the broader gig economy.


Disclaimer: This guide provides a general overview of recent and ongoing lawsuits involving Uber. Many cases discussed are active, and the information is based on current allegations and public records. Legal outcomes may change as cases progress. For specific legal advice or up-to-date information, consult an attorney or official court documents.

About the author
Von Wooding, Esq.

Von Wooding, Esq.

D.C. licensed attorney Founder at Counsel Stack

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