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Uber fined $8.5 Million in a trial for driver sexual assault

Uber was ordered to pay $8.5m by an American jury on Thursday after it found the company liable for a lawsuit filed by a woman alleging that she was sexually assaulted by a driver at age 19. This verdict could have a significant impact on thousands of other cases brought against Uber.

Jaylynn Dean brought the?case. It was the first bellwether trial of over 3,000 similar lawsuits filed against Uber in U.S. Federal court. Bellwether trials test legal theories, and can help determine the value of claims in order to reach a settlement. In federal court in Phoenix Arizona, the jury found that the Uber driver was acting as an agent, and held the company responsible. The jury awarded Dean $8.5 Million in compensatory damages, but did not award punitive damages. Dean's attorneys had asked for more than $140 Million in damages.

Uber shares fell 1.5% after-hours. Shares of?Lyft fell 1.8%, despite the fact that it is also facing similar lawsuits.

Uber's spokesperson announced that it would appeal the verdict and said the jury had rejected Dean's claims of negligence or defective safety systems. The spokesperson stated that "this verdict affirms Uber's responsibility and investment in rider safety."

Sarah London, the attorney for Dean, stated that the verdict "validates thousands of survivors, who have come forward under great risk to demand accountability from Uber for its focus upon profit over passenger safety."

Dean, a resident of Oklahoma, filed a lawsuit against Uber in 2023. This was one month after the alleged assault that took place in Arizona. She claimed Uber was aware that a "wave" of sexual assaults had been committed by their drivers but failed to take the basic steps to improve safety for its riders. These assertions have dogged Uber for years, drawing headlines and congressional attention.

Alexandra Walsh, the attorney for Dean, said during the closing arguments of the trial that Uber had advertised itself as a safer option for women who were traveling late at night, especially if they'd been drinking.

"Women are aware that the world is dangerous." Walsh stated that we are aware of the dangers associated with sexual assault. They made us think that it was a safe place.

UBER SAYS THAT IT IS NOT LIABLE FOR THE ACTIONS OF DRIVERS

Uber, which is facing numerous safety concerns, including accusations of lax driver screening and a culture that critics say prioritizes growth over passenger protection has said it shouldn't be held responsible for criminal behavior by drivers using its platform. It says its background checks are sufficient and its disclosures regarding assaults.

The company claims that its drivers are independent contractors and not employees. It also maintains that it cannot be held responsible for any actions outside of what can be reasonably considered their duty.

"He had no criminal history. Kim Bueno said during the closing arguments that the driver had no criminal history. Was this predictable to Uber? The answer is no.

Dean's suit claimed that she was 'intoxicated' when she hired Uber to drive her from the home of her boyfriend to her hotel. Dean claimed in her lawsuit that the driver harassed her during the ride, before stopping the vehicle and raping Dean.

Dean's case was overseen by U.S. district judge Charles Breyer in Phoenix. Breyer is normally seated in San Francisco. Breyer manages all similar federal cases brought against Uber, which are centralized at his San Francisco court. In California, the company also faces more than 500 lawsuits. In September, in the only case that has gone to trial to date, a jury sided with Uber. The jury determined that, while Uber had been negligent in its safety measures and procedures, this negligence did not play a significant role in the woman's injury.

Mark Giarelli, Morningstar analyst, said that while it is difficult to determine the financial impact of the ruling, Uber's background check procedures are likely to improve as a result. Giarelli stated that this highlights the importance of thorough background checks for convenience apps such as Uber and DoorDash, where customers interact with the supply side (drivers and delivery agents). Reporting by Diana Novak Jones and Abhirup in San Francisco. Editing by Alexia Garamfalvi and Ethan Smith.

(source: Reuters)