Final Settlement Hearing Set for December in Class Action vs. Uber

The Boston Retirement System is a class representative of investors seeking a $200 million settlement from the ride-share giant for false statements connected with its 2019 IPO.

The Boston Retirement System and other investors are one step closer to reaching a settlement with Uber in a class action lawsuit seeking damages from investment losses related to the company’s 2019 initial public offering.

A hearing for final approval of the settlement is scheduled for December 5 in U.S. District Court for the Northern District of California to determine if the proposed settlement is fair and review a plan of allocation for the distribution of settlement funds among class members and for counsel’s fees.

The Boston Retirement System, with $5.4 billion in assets and 34,000 in active and retired members and beneficiaries, is one of the court-appointed class representatives in the case, Boston Retirement System v. Uber Technologies Inc. Defendants in the case include the company, executives, board members and a group of banks that underwrote the IPO.

The Boston Retirement System and the law firm representing the pension fund, Labaton Keller Sucharow LLP, as the result of a mediation process, in April proposed a $200 million settlement for investors who purchased Uber stock during the period between May 10, 2019, and November 5, 2019, shortly after the company’s IPO.

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In 2020, the BRS filed a complaint against Uber, alleging that documents connected with the company’s IPO contained false and misleading statements and/or omissions.

Uber’s IPO priced on May 10, 2019, at $45 per share, reaching an $82.4 billion valuation, less than the projected $120 billion some investors had anticipated. Shares closed the day at $41, a drop of more than 7%.

Since its IPO, Uber’s shares have increased roughly 67%, as of September 6.

“We believe strongly that our IPO materials were both complete and accurate and are pleased to put this matter behind us,” a spokesperson for Uber said.