A US federal jury has ordered ride-hailing firm Uber Technologies Inc to pay US$8.5 million after finding the company liable for a sexual assault committed by one of its drivers against a passenger, marking a major legal blow for the platform.
The verdict was delivered on Thursday following a trial in Phoenix, Arizona, and is seen as a critical test case as Uber faces more than 3,000 similar lawsuits consolidated in federal court across the United States. Legal observers say the ruling could influence future settlement talks and litigation strategies involving claims of passenger safety.
The case, brought by Oklahoma resident Jaylynn Dean, was the first “bellwether” trial selected from the consolidated lawsuits. Bellwether cases are designed to assess how juries may respond to key arguments and to help determine potential compensation benchmarks for remaining plaintiffs.
Jurors ruled that the driver who assaulted Dean was acting as an agent of Uber, making the company legally responsible for his conduct. They awarded US$8.5 million in compensatory damages but declined to impose punitive damages, which Dean’s legal team had sought at more than US$140 million.
In a statement, Uber said it intends to appeal the decision, stressing that the jury rejected claims that the company was negligent or operated flawed safety systems. The company maintained that the verdict showed it had acted responsibly and invested substantially in passenger protection measures.
Dean’s lawyer, Sarah London, said the outcome sent a powerful message to survivors of sexual assault. She described the ruling as a validation for thousands who have come forward despite personal risks, arguing that corporate accountability must outweigh commercial interests.
Dean filed the lawsuit in 2023, about a month after the alleged assault occurred in Arizona. Court filings stated she had booked an Uber ride while intoxicated and was subjected to inappropriate questioning before the driver allegedly stopped the vehicle and raped her.
During closing arguments, Dean’s counsel told jurors that Uber had promoted itself as a safe transport option, particularly for women, while failing to address known risks. The lawsuit argued that the company was aware of repeated sexual assault complaints involving drivers but did not take sufficient steps to prevent further incidents.
Uber has consistently argued that it should not be held liable for criminal acts committed by drivers, whom it classifies as independent contractors rather than employees. Its legal team said the driver involved had no prior criminal record and that the assault was not foreseeable.
The case is being overseen by US District Judge Charles Breyer, who is managing the broader federal litigation against Uber from his San Francisco courtroom. Uber’s shares slipped about 0.5 per cent in extended trading following news of the verdict, reflecting investor concerns over potential financial and reputational fallout.
Beyond the federal cases, Uber is also facing more than 500 similar lawsuits in California state courts. In the only state-level case to reach trial so far, a jury ruled in Uber’s favour last September. Rival ride-hailing firm Lyft is confronting comparable legal challenges, with its shares falling about 1 per cent after the Uber verdict, highlighting growing scrutiny over passenger safety across the sector.
