Uber Settles ‘Safest Ride’ False Advertising Class Action Lawsuit

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The potential Uber class action lawsuit that alleged the company falsely advertised its background check procedures ended with a private settlement.

Uber calls itself a “transportation network company,” which has a website and smartphone app connecting people who want rides with people willing to use their own cars to drive people, creating a private taxi service. Uber states that it is “better, faster, and smarter than a taxi.”

The Uber false advertising class action lawsuit filed in January of 2015, took issue with Uber’s statements that it provided the “Safest Ride on the Road” by using “industry leading” background checks.

Plaintiff Jacob Sabatino alleged that Uber does not offer a training program for new drivers, does not require any oversight or supervision of its drivers, and does not, in fact, even meet drivers before they start working for the company.

Sabatino asserted that Uber and the other defendants “do not have the safest ride on the road, do not use industry leading background checks, do not train or supervise their drivers, and are continuously violating California laws.”  Sabatino claimed that if he had known Uber’s statements were false or misleading, “he would not have used the Uber App to obtain a ride.”

On Jan. 20, attorneys for both plaintiff Sabatino and defendant Uber Technologies, Inc., ended the potential class action lawsuit, saying that “The Parties have signed a confidential settlement agreement that resolves Plaintiff’s claims against Defendants in their entirety.”

Also settled were claims against companies Raiser, LLC, Raiser-CA, LLC, Raiser-DC, LLC, and Raiser-PA, LLC, which Sabatino alleged were owned and operated by Uber, were used to hire drivers for the company, and were created to shield Uber from any legal consequences of those drivers’ actions.

It is unclear what, if any, changes to Uber’s background checks and hiring of its drivers will result from this Uber class action settlement.

However, this Uber false advertising class action lawsuit was not the only action filed against Uber for its claims about background checks. In December of 2014, prosecutors for the City of San Fransisco and Los Angeles County filed an action against Uber alleging that those same statements about the safety of its drivers and the strength of its background checks violate unfair trade practice laws.

According to the prosecutors’ complaint, people with convictions for identity theft, burglary, kidnapping, and even murder had passed Uber’s background checks for its potential drivers. The lawsuit states that Uber’s background checks do not use fingerprinting, and therefore cannot be secure. Uber rival Lyft was originally part of that same lawsuit, but has since settled.

Plaintiff Jacob Sabatino was represented by Jonathan A. Michaels, Kathryn J. Harvey, Kianna C. Parviz, and M. Todd Ratay of MLG Automotive Law, APLC.

The Uber Background Check Class Action Lawsuit Settlement is Jacob Sabatino v. Uber Technologies Inc., et al., Case No. 3:15-cv-00363, in the U.S. District Court for the Northern District of California, San Francisco Division.