Boston Retirement System v. Uber Technologies, Inc.

On January 3, 2020, Labaton Keller Sucharow LLP was appointed lead counsel in a securities class action against Uber Technologies, Inc. (Uber) relating to Uber’s initial public offering (IPO) that raised more than $8 billion in gross proceeds.  Uber is a multinational ride-hailing company that offers peer-to-peer (P2P) ridesharing and black car transportation and on-demand food delivery, among other “Personal Mobility” and on-demand services.  The action is pending before the Honorable Richard Seeborg in the U.S. District Court for the Northern District of California.

On March 3, 2020, the lead plaintiff filed an amended complaint alleging that the IPO registration statement and prospectus made material misstatements and omissions in violation of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933.  In particular, the amended complaint alleges that Uber premised the company’s growth on an undisclosed, unsustainable, and often illegal “growth at any cost” business model.  The amended complaint alleges three categories of misstatements and omissions concerning Uber’s (1) illegal business model, (2) passenger safety, and (3) financial condition.

On August 7, 2020, Judge Seeborg denied in full Defendants’ motion to dismiss, sustaining the claims against Uber, its directors and officers, and the underwriters for the IPO.  Judge Seeborg credited the lead plaintiff’s “new day at Uber” theory, explaining, “‘It’s a new day’ is not mere puffery when the speaker knows significant remnants of the ‘old day’—for example, continuing to launch in markets where Uber was clearly illegal, and paying fines or bribes as a cost of doing business—remain.”  On September 20, 2020, the lead plaintiff filed a motion to certify a class of investors that “purchased or otherwise acquired Uber’s publicly traded common stock pursuant and/or traceable to the Offering Documents for Uber’s IPO, and who were damaged thereby.”

On January 25, 2021, Judge Seeborg consolidated another case into the Boston Retirement System case, and on May 14, 2021, the lead plaintiff filed a second amended complaint that adds four plaintiffs from the consolidated case as new named plaintiffs.  On October 1, 2021, Judge Seeborg denied in full Defendants’ second motion to dismiss the new named plaintiffs’ claims.  On October 29, 2021, the lead plaintiff filed a revised motion for class certification that adds three new named plaintiffs as additional proposed class representatives.

On July 26, 2022, Judge Seeborg granted class certification and appointed Labaton Keller Sucharow as class counsel.  The Class includes “[a]ll persons and entities that purchased or otherwise acquired Uber’s publicly traded common stock pursuant and/or traceable to the Offering Documents for Uber’s IPO, and who were damaged thereby.”

The case is Boston Retirement System v. Uber Technologies, Inc., No. 19-cv-6361 (N.D. Cal.).  Labaton Keller Sucharow represents lead plaintiff Boston Retirement System.