Key Points
- A US federal jury awarded $8.5 million to a woman in a sexual assault lawsuit against Uber
- The assault allegedly occurred while the plaintiff, then 19, was travelling in an Uber vehicle
- The case is the first bellwether trial among more than 3,000 consolidated claims in the United States
- The jury ruled the company liable under the legal theory that the driver acted as an agent of the company during the ride
ISLAMABAD: A federal jury in Phoenix, Arizona, USA, on Wednesday ordered Uber Technologies Inc., one of the world’s largest ride-hailing companies, to pay $8.5 million to a woman who alleged she was sexually assaulted by an Uber driver when she was 19.
The ruling marks the first bellwether trial in a series of over 3,000 similar lawsuits across the United States, in which plaintiffs claim drivers engaged in sexual misconduct while providing rides through the company’s app.
The plaintiff argued that Uber should be held responsible because the driver acted as an agent of the company while transporting passengers. Under US law, companies can sometimes be held liable for the actions of contractors if the incident occurs within the scope of providing the company’s service.
The jury awarded compensatory damages, though it declined to grant punitive damages that the plaintiff had sought to punish the company, international media, including Bloomberg, reported.
Bellwether trials serve as a test case to set legal precedents and provide insights into how the remaining consolidated cases might be resolved. Legal experts say the $8.5 million verdict could influence settlements and future jury decisions in the thousands of pending claims against Uber.
Uber has maintained that its drivers are independent contractors rather than employees, arguing that the company should not be held liable for criminal acts committed outside the scope of their work. Following the verdict, Uber said it intends to appeal and reaffirmed its commitment to passenger safety, including enhanced background checks, ride monitoring, and emergency safety features within its app.
The case highlights the growing scrutiny on ride-hailing platforms worldwide regarding passenger safety, driver oversight, and corporate responsibility. Analysts say the ruling may prompt broader discussions about regulatory standards and liability in the global ride-hailing industry.
