What Went Wrong With Uber’s IPO — and How Investors Could Still Win

Court: N.D. California

Case: 3:19-cv-06361

Uber Technologies UBER has agreed to a $200 million settlement with investors who accused the company of misleading them during its 2019 IPO.

This settlement aims to close a chapter marked by executives downplaying legal, safety, and financial risks while pushing a “growth at any cost” narrative.

How Leadership Lapses Fueled the Crisis

When Uber went public in May 2019, it raised over $8 billion, valuing the company at $75.5 billion. Executives promised a “new day at Uber,” portraying a company committed to growth, reform, and long-term market dominance.

But, it was soon revealed that Uber’s model was based on “an undisclosed, unsustainable, and often illegal ‘growth at any cost’ business strategy”.

Former employees revealed that Uber’s “playbook” was to launch operations in new markets, whether or not they were legal, reimbursing drivers for fines as simply a “cost of doing business.”

Investors Call Out the IPO Storyline

The problems went beyond regulation. Safety issues, which Uber failed to disclose to investors before the IPO, became a major flashpoint. According to internal data, in just 2018, there were over 3,000 reported sexual assaults involving Uber rides in the U.S. alone. Yet these figures were kept hidden until after the IPO.

A Washington Post investigation described how Uber’s safety unit was designed to “act first to shield Uber from liability and negative publicity” rather than protect passengers.

Financially, Uber was also in far worse shape than advertised. The quarter immediately after the IPO revealed a staggering $5.2 billion loss, the largest in its history, alongside its slowest-ever growth rates.

As these realities came to light, Uber’s stock tumbled more than 40% from its $45 IPO price, erasing billions in investor value.

Soon, investors filed a lawsuit against the company.

A Deal to Compensate Shareholders

After years of litigation, Uber has agreed to a $200 million settlement with investors. While the original claims deadline has passed, investors can still file a late claim and recover part of their losses. You can check the details and submit yours here.