'Uber continues to suffer...': Company files third lawsuit over fake insurance claims in US
has filed a lawsuit against a group of lawyers and medical providers in Los Angeles, US, over alleged
fraudulent insurance claims
, a report claims. The latest litigation reportedly marks the third such lawsuit the ride-hailing giant has filed this year. According to a report by Bloomberg, Uber has claimed that these activities have cost the company millions in legal fees and that the
"scheme remains ongoing, and Uber continues to suffer."
The federal case, which was filed in the central district of California, accuses the defendants of directing passengers to
"pre-selected medical providers"
who then submitted inflated bills for treating minor or non-existent injuries from minor collisions that occurred between 2019 and 2024.
Uber alleges that the personal injury lawyers involved exploited a state-mandated $1 million rideshare insurance policy limit by fraudulently inducing
"significantly larger settlement payments."
In one instance, the company stated a medical bill was 10 times the typical amount.
What Uber wants from this lawsuit
This lawsuit aims to
"recover the full extent"
of the millions of dollars in defence costs and settlements resulting from these alleged schemes. In addition to its legal action, Uber is also supporting state legislation that seeks to lower insurance coverage limits for rideshare companies.
Earlier this year, Uber filed similar
racketeering lawsuits
in New York and Florida as part of a broader campaign to reduce rising insurance costs, which the company says are passed on to customers through higher fares. This has contributed to a continued slowdown in Uber's US rideshare business, the company has said.
According to Uber, insurance costs can make up around 32% of fares in California and as much as 45% in Los Angeles County, which are among the higher rates in the country.
In response, the company has invested heavily in local and national advertising this year to advocate for changes to insurance regulations.
Last week, Uber voiced
'strong support'
for a California senate bill aimed at reducing the minimum requirements for uninsured and underinsured motorist coverage offered by rideshare companies. As per a recent testimony from Ramona Prieto, Uber rival Lyft's Director of Policy has also backed the proposed legislation.
Uber has also seen some movement on this front. In June, the New York City Council approved a bill the company supported that reduced insurance requirements for taxis and rideshare drivers under personal injury protection coverage.
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