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Uber (UBER) agreed to pay $200M to investors to settle claims related to its IPO, including financial losses, issues with bypassing local regulations, and safety concerns.

In 2019, Uber went public and raised over $8.1 billion. Soon after, the company faced major financial losses and several accusations. Uber was criticized for bypassing local regulations in many areas and for ignoring serious safety issues, including sexual assaults, deaths from crashes, and fatal assaults before the IPO.

On May 9, 2019: Uber went public and raised over $8.1 billion. 

On August 8, 2019: Uber reported a $5.24B loss and $2.87B revenue for Q2 2019. Ridesharing revenue grew just 2%, while expenses rose by $507M.

After these results, $UBER fell by over 20%.

On October 4, 2019: Uber faced a lawsuit from investors.

In May 2019, Uber's IPO raised over $8.1 billion by selling more than 180 million shares at $45 each.

In Q2 2019, the same quarter as its IPO, Uber reported a massive $5.2 billion loss, one of the largest in its history. The company said $3.9 billion of this was due to stock-based compensation for early investors, but even without that, the loss was $1.3 billion.

Then, Uber's Q2 2019 results showed slower growth than expected, with GAAP revenue up 14% and adjusted net revenue up 12%. Trips and monthly active users grew by only 35% and 30%, among the slowest in the company's history.

After that, Uber faced several accusations.

First, Uber's past and present success was based on a hidden and unsustainable business model that often involved illegal practices.

Former employee revealed that Uber’s launch strategy involved quickly setting up in new cities and bypassing local regulations. From 2017 to 2019, Uber allowed drivers in Tanzania to operate without required licenses, leading to police arrests of employees.

The employee also explained that Uber used the same illegal operating strategy in many high-growth markets, including India, Latin America, Brazil, Singapore, and China.

Second, Uber overlooked major safety issues to fuel its growth. 

In the two years before its IPO, the company reported 5,981 sexual assaults, 107 deaths from crashes, and 19 fatal assaults in the U.S.

Moreover, Uber promised investors growth now and profits later, but its "growth at any cost" approach was flawed and hid its true financial state. 

As a result, Uber faced a lawsuit from investors over disappointing financial results and misleading statements about its prospects.

Uber has agreed to pay $200M to investors to settle claims related to this situation.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Uber Technologies Inc

All persons who purchased or otherwise acquired Uber’s publicly traded common stock pursuant and/or traceable to the Offering Documents for Uber’s IPO.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

Audit the claim and make sure you get the maximum possible payout

File a claim with the settlement administration

Correspond with the settlement administration to resolve emerging issues

Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.

Accepting Late Claims

Mismanagement

Misleading Statements

Omissions

Directors

Management

Uber (UBER) $200M Investor Settlement

uber-investor-settlement

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On Sunday, July 10, 2022, major media including The Guardian and Bloomberg published reports regarding “Uber Files”, a cache of 124,000 internal Uber records, spanning from 2013 to 2017. These files revealed, among other things, how Uber secretly met with various government officials and politicians to skirt laws and regulations around the world, as well as risked Uber drivers’ safety, to advance the Company’s growth, and how all the foregoing conduct was known to, and in fact encouraged by, the Company’s top management.  Investors were not properly informed about the scale of violations and related reputational and governmental risks. On the leak of the internal files Uber’s stock price fell 5.15% (Monday, July 11, 2022).