Uber Hit With $40M Verdict in Wrongful Death Case Over Driver Ejecting Passenger
UBER is trading near its 52-week low of $65.41 (8.6% above the low).
Summary
A California judge ordered Uber to pay $40 million to the parents of a 23-year-old woman killed after her Uber driver pulled over on a freeway and forced her and a friend out of the car. The ruling rejects Uber's argument that it is merely a software platform, holding it is a common carrier with a non-delegable duty to protect passengers. This is a significant legal precedent that could expose Uber to broader liability in similar cases. The award is material relative to Uber's market cap but not catastrophic; however, the common carrier designation may have wider implications for its business model. The company has not yet commented.
At the time of this announcement, UBER was trading at $71.05 on NYSE in the Trade & Services sector, with a market capitalization of approximately $144.8B. The 52-week trading range was $65.41 to $101.99. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.