SAN FRANCISCO — Shareholders led by the Police and Fire Retirement System of the City of Detroit filed a lawsuit on Monday against Uber's board of directors and CEO Dara Khosrowshahi. The complaint, filed in the U.S. District Court for the Northern District of California in San Francisco, alleges that management prioritized profits over compliance and safety.

The lawsuit claims board members breached their fiduciary duty by ignoring repeated warnings of compliance and safety failures. It characterizes Uber as a "serial compliance offender" that has "knowingly" cut corners. According to the complaint, this lack of a compliance culture has resulted in thousands of lawsuits from victims alleging sexual assault and harassment by drivers. The complaint states, "The victims of this lack of compliance culture include sexual assault and harassment victims, customers with disabilities, and unwary consumers looking to subscribe to Uber One."

Shareholders said oversight failures were also a factor in lawsuits filed last year by the federal government, which accused Uber of routinely refusing to serve disabled passengers. The complaint said Uber's reputation has been "irredeemably damaged" by negative media coverage. Shareholders also said Dara Khosrowshahi has in nearly nine years as chief executive been "less brazen in pushing regulatory limits" than his predecessor but continued to skimp on compliance. They noted that the board has been told repeatedly that fewer than 40% of users believe the company takes safety seriously. As of June 1, Uber faced 3,571 lawsuits in litigation overseen in the San Francisco court accusing drivers of sexual misconduct.

The plaintiffs want Uber's leaders to personally compensate the company for alleged harm, return certain compensation they received, and implement stronger oversight and compliance measures. The lawsuit seeks to require directors to reimburse Uber for their alleged breaches of fiduciary duties and violations of federal securities law.

An Uber spokesperson wrote in an emailed statement: "This suit ignores important facts and is based on misleading, false narratives from other meritless lawsuits that we have already addressed publicly and in the courtroom."