UBER: Seattle Law Triggers New Legal Battle — But Investors Can Still Benefit From $200M Deal

Court: N.D. California

Case: 3:19-cv-06361

This week, Uber UBER and Instacart argued before the Ninth Circuit that Seattle’s new App-Based Worker Deactivation Rights Ordinance violates their First Amendment rights. The law, in effect since January, requires companies with 250+ gig workers to provide clear written policies and explanations for deactivating driver accounts — a shift from the previous at-will system.

Uber claims the law forces it to speak the city’s views on “safety and efficiency,” not its own. But the judges pushed back, with one noting that the ordinance appears to regulate conduct, not speech.

The ruling is still pending, but the case reflects Uber’s ongoing friction with local regulations — a key issue that investors have faced before.

Back in 2019, Uber went public with high hopes — raising $8.1 billion in its IPO. But by Q2 of that year, it reported a $5.2B loss, triggering a 20% stock drop. Investors filed suit, claiming Uber had misled them about its finances, its exposure to local regulatory crackdowns, and serious safety failures.

Among the revelations: Uber allegedly bypassed licensing rules in emerging markets and failed to disclose thousands of reported sexual assaults, fatal crashes, and other incidents between 2017 and 2019.

To resolve these allegations, Uber agreed to pay $200 million to affected investors.

If you purchased UBER stock around its IPO in 2019, you may still be eligible to claim part of this settlement.

You can check more information about the UBER settlement and file for payment HERE.