After a key setback in the first trial of its kind before a federal jury, Uber (UBER.N) is expected to return to court on Tuesday to face a second woman's claims that she was sexually assaulted by a driver she booked through the app.
The jury trial in Charlotte, North Carolina federal court, which is expected to last about three weeks, will help determine whether a recent $8.5 million verdict in Arizona was a fluke or a sign of real trouble for Uber as it faces more than 3,300 similar lawsuits that have been consolidated in federal court.
Both cases are so-called "bellwethers," or test cases for that litigation, and the verdicts could help determine the value of the remaining lawsuits for any potential settlement or resolution of the cases en masse.
The anonymous plaintiff claims that upon arriving at her destination in Raleigh, North Carolina, just before 2 a.m. in March 2019, her Uber driver grabbed her inner thigh and asked if he could “keep it with him," prompting her to flee from the vehicle.
Uber, which has faced numerous safety controversies, has not denied that the incident took place, but claims in court filings that it is a software company and not a "common carrier" such as a taxi service that has a legal duty to protect passengers under North Carolina law. Even if the plaintiff proves otherwise, Uber argues, the company is not liable for the actions of an independent contractor.
The question of whether drivers are Uber's employees or contractors, which has a range of legal implications, has dogged the company for most of its existence in the U.S. and abroad. A deluge of lawsuits and scrutiny by policymakers has not yielded a consensus.
The North Carolina trial will be presided over by U.S. District Judge Charles Breyer, who normally sits in San Francisco and is overseeing the mass litigation against Uber.
In a statement Friday, an Uber spokesperson said the incident in the North Carolina trial was never reported to the company or to law enforcement and only came to light when the plaintiff filed a lawsuit.
"Sexual assault is a horrific crime that we take incredibly seriously. We remain focused on investing in the technology, policies, and partnerships that strengthen safety, help prevent harm, and support survivors," the spokesperson said.
Lawyers for the plaintiff did not respond to a request for comment.
The plaintiff in the first case to go to trial, an Oklahoma resident, claimed an Uber driver in Arizona harassed and then raped her during a ride in 2023.
A jury in February found that the driver was an agent of Uber, holding the company responsible for his actions. They awarded the woman $8.5 million in compensatory damages but declined to award punitive damages. Attorneys for the plaintiff had sought more than $140 million in damages. Uber has asked Breyer, who also presided over that trial, to throw out the verdict or order a new trial.
Uber is also facing more than 500 additional cases making similar claims in California state court. The company in September won the only trial to take place thus far in the state court cases, when a jury found that it had failed to put measures in place to protect the plaintiff's safety, but that its negligence was not a substantial factor in causing her harm.
