New Jersey Attorney General Matthew J. Platkin has reportedly opened an inquiry into how Uber Technologies Inc. (NYSE:UBER) addresses sexual assault and whether its public safety messaging has misled riders and drivers.
The civil investigation examines the prevalence of sexual violence on the platform and how the company promoted safety and consumer safeguards, The New York Times reports, citing two people with knowledge of the inquiry.
Investigators are probing potential consumer-fraud issues, including whether Uber's advertised safeguards matched users' real-world experiences.
The attorney general's office issued a subpoena in September seeking internal data on sexual assaults and misconduct, as well as product decisions around safety features, The New York Times adds.
The inquiry follows an August report detailing court records that suggested sexual violence on the app occurred far more often than the company had disclosed.
According to those documents, Uber received a report of sexual assault or sexual misconduct in the United States roughly every eight minutes between 2017 and 2022, per the report.
Uber teams tested tools shown to reduce risk—such as improved rider–driver matching, required video recording, and women-only pairing. Still, some initiatives were delayed, optional, or not deployed broadly.
Company spokesperson Matt Kallman told The New York Times that Uber is cooperating with New Jersey's inquiry and looks forward to sharing more about its ongoing safety efforts.
"We've been clear and transparent with the public about the incidents that occur on our platform through our safety reports, which show that serious safety issues are exceedingly rare,” Kallman was quoted in The New York Times. Uber has long stated that 99.9% of U.S. trips conclude without any incident.
Last month, a House oversight subcommittee began a separate review into Uber's handling of sexual-assault reports.
The company also faces more than 3,000 lawsuits nationwide from riders alleging assault or harassment by drivers. In a recent California case, a jury found Uber was not responsible for a 2016 assault; jurors also concluded the company had been negligent in general safety practices at the time, but that this negligence was not a substantial factor in causing the attack, the report adds.
According to Benzinga Pro, UBER stock has gained over 30% in the past year. Investors can gain exposure to the stock via GraniteShares 2x Long UBER Daily ETF (NASDAQ:UBRL).
Price Action: UBER shares are trading higher by 1.30% to $99.06 at last check on Wednesday.
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