CPM Announces Court Grants Final Approval of $200 Million Settlement in Uber IPO Class Action
United States District Judge Richard Seeborg, of the Northern District of California, granted final approval of the historic $200 million settlement reached on behalf of investors in the Uber IPO class action. The case was filed in 2019, pre-Covid, after Uber’s stock quickly declined in value after the IPO. Uber’s stock reportedly lost 42% of its value by November 2019, trading around $25 per share compared to its opening of $45 per share. Investors alleged that the ride sharing platform concealed key information in its IPO filings, including internal reports of stalling growth and passenger safety issues, including rampant sexual assaults by drivers.
CPM was co-lead counsel in the California state action and ultimately joined forces with federal lead counsel to pursue the case in federal court.
The case was litigated for almost five years, and involved the production and review of hundreds of thousands of Uber’s documents and dozens of depositions throughout the United States, including of Uber’s officers and directors. The $200 million settlement will be paid out to those who bought Uber shares after the company went public.