Uber, FedEx Face Racketeering Counterclaims Alleging Abuse of Law
UBER is trading near its 52-week low of $68.46 (2.7% above the low).
Summary
Uber Technologies and FedEx are now facing counterclaims in a racketeering lawsuit they initiated against a personal injury law firm. The law firm, Simon & Simon, alleges that Uber and FedEx are abusing the federal anti-racketeering law (RICO) in an attempt to put them out of business. The counterclaims seek 'substantial damages' from both companies, which could be tripled under RICO, and allege 'sham litigation.' This development introduces new legal and reputational risk for both companies, potentially impacting their broader strategy of pursuing similar lawsuits against other law firms.
At the time of this announcement, UBER was trading at $70.33 on NYSE in the Trade & Services sector, with a market capitalization of approximately $143.2B. The 52-week trading range was $68.46 to $101.99. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.