Uber ordered to pay $8.5 million in trial over driver sex assault claims

A federal jury in Phoenix ordered Uber to pay $8.5 million on Thursday after finding it liable in a lawsuit filed by a woman who said she was sexually assaulted by a driver; This decision could impact thousands of similar lawsuits against the ride-hailing company.

The lawsuit, filed by plaintiff Jaylynn Dean, was the first hearing in what is known as a “pioneer” of more than 3,000 similar lawsuits against Uber that have been consolidated in U.S. federal court. Preliminary hearings are used to test legal theories and help gauge the value of claims in possible settlements.

The jury found that the driver was an agent of Uber and therefore the company was liable for his actions. They awarded Dean $8.5 million in damages, but declined to award punitive damages. Dean’s lawyers had sought damages of more than $140 million.

The jury rejected Dean’s other claims that the company was negligent or that its safety systems were defective, and the company plans to appeal, an Uber spokesman said in a statement. “This decision confirms that Uber is acting responsibly and making meaningful investments in passenger safety,” the spokesperson said.

Dean’s lawyer, Sarah London, said the verdict “validates the thousands of survivors who have come forward at great personal risk to demand liability against Uber for its focus on profit over passenger safety.”

Uber shares fell 0.5% in extended trading after the decision was announced.

Dean, who lives in Oklahoma, filed a lawsuit against Uber in 2023, a month after the alleged attack in Arizona. He said Uber was aware of a number of sexual assaults by its drivers but failed to take basic measures to improve drivers’ safety. Such allegations have been on the company’s agenda for a long time, making headlines and being examined in congress.

Dean’s attorney, Alexandra Walsh, said during closing arguments of the trial that Uber markets itself as a safe option for women traveling at night, especially if they have been drinking.

“Women know the world is a dangerous place. We know the risk of sexual assault,” Walsh said. “They made us believe this was a safe place from this.”

Uber says it’s not responsible for driver actions

Facing numerous safety controversies, including allegations that driver vetting is lax and cultural critics say growth is prioritized over passenger protection, Uber has argued that it should not be held accountable for the criminal behavior of drivers who use its platform, saying background checks and explanations for attacks are sufficient.

The company argues that its drivers are independent contractors rather than employees and, regardless of their classification, cannot reasonably be liable for acts outside the scope of their duties.

“He had no criminal history. None,” Uber attorney Kim Bueno said of the driver during closing arguments, noting that he had made 10,000 trips on the app and received a nearly perfect rating from drivers. “Was this foreseeable for Uber? And the answer must be no.”

Dean’s lawsuit said she was drunk when she hired an Uber driver to take her from her boyfriend’s house to her hotel.

Dean alleged in the lawsuit that the driver asked her harassing questions before stopping the car and raping her.

U.S. District Judge Charles Breyer, who normally sits on the bench in San Francisco, oversaw Dean’s trial in Phoenix. Breyer is presiding over all similar federal lawsuits against Uber, which are centered in his court in San Francisco.

The company also faces more than 500 lawsuits in California state court. In the only case that has gone to trial so far, the jury sided with Uber in September. The jury found that the company was negligent in its safety precautions, but that negligence was not a significant factor in the woman’s harm.

Uber rival Lyft faces similar lawsuits in both state and federal court, but there is no coordinated federal lawsuit for these claims. Following the decision, Lyft shares lost 1 percent of their value.