'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.
Google Pixel 10 Series Launch: Everything Coming on August 20
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
29 minutes ago
- Hindustan Times
Microsoft CEO Satya Nadella explains layoffs in memo to employees: ‘Enigma of success'
Microsoft CEO Satya Nadella sent a memo to his employees on Thursday explaining why the company laid off thousands of staffers despite increased investments and recognition. CEO Satya Nadella emphasised that Microsoft wants to achieve its success by its ability to undergo the difficult process of "unlearning" and "learning".(Bloomberg) Microsoft has laid off more than 15,000 people so far this year. It also cut around 2,000 additional staff who were assessed as underperformers. Over the last three fiscal quarters, Microsoft's net income has totalled around $75 billion, Business Insider reported. The company is also spending $80 billion on investments for artificial intelligence (AI) infrastructure. Microsoft's stocks have also been on an upward trajectory, with the closing price hitting a record of over $500 for the first time on July 9. What did Satya Nadella say in layoff memo "Before anything else, I want to speak to what's been weighing heavily on me and what I know many of you are thinking about: the recent job eliminations," Nadella wrote in a memo to his employees. Satya Nadella went on to explain why, despite investing more than ever before and recognising at levels never seen before, Microsoft laid off employees. "By every objective measure, Microsoft is thriving—our market performance, strategic positioning, and growth all point up and to the right," he said. "We're investing more in CapEx than ever before. Our overall headcount is relatively unchanged, and some of the talent and expertise in our industry and at Microsoft is being recognised and rewarded at levels never seen before. And yet, at the same time, we've undergone layoffs," Nadella added. He further wrote, 'This is the enigma of success in an industry that has no franchise value. Progress isn't linear. It's dynamic, sometimes dissonant, and always demanding. But it's also a new opportunity for us to shape, lead through, and have a greater impact than ever before.' Nadella emphasised that Microsoft wants to achieve its success by its ability to undergo the difficult process of "unlearning" and "learning". In his memo to the Microsoft employees, Nadella also mentioned the 'why, what, and how' of the company's mission, priorities, and culture. ALSO READ | Microsoft layoffs: Why Perfect Dark reboot was canceled and The Initiative studio closed However, several employees have expressed disheartened feelings over their layoff from Microsoft, emphasising how they enjoyed working for the company, CNBC reported. After Nvidia, Microsoft is the world's most valuable public company. Its Windows and Office franchises continue to be the dominant force in the market, and its Azure cloud services have also reportedly seen faster growth in recent years.
Mint
an hour ago
- Mint
Centene Earnings Fall Short of Expectations as Woes Mount
(Bloomberg) -- Centene Corp. reported a surprise quarterly loss Friday, yet another disappointment for the embattled health insurer, which recently pulled its 2025 guidance citing revenue pressure. Shares dropped 11% before markets opened in New York. They had fallen 56% since the start of the year. Centene said it would provide updated guidance on a conference call with analysts, which starts at 8 a.m. New York time. The insurer chalked up the second-quarter loss to a miscalculation in its Affordable Care Act business — the same reason it pulled guidance earlier this year. Insurers receive compensation for taking on sicker patients in that program and Centene said it would receive less of that money than it had previously expected. For the second quarter, Centene announced an adjusted loss per share of 16 cents. Wall Street analysts expected a profit of 55 cents per share. 'We are disappointed by our second quarter results, but we have a clear understanding of the trends that have impacted our performance, and are working with urgency and focus to restore our earnings trajectory,' Sarah London, chief executive officer of Centene, said in the company's earnings statement. In the second quarter, the company spent 93% of premium revenues of medical costs, higher than the average analyst expectation of 91.6%. Investors prefer a lower number. The company said its health benefits ratio, the percentage of premium revenues spent on medical costs, rose from last year, largely because of the ACA revenue issue. Centene said it also saw higher medical costs in ACA plans, as well as increased costs in Medicaid, which mostly came from behavioral health, home health, and expensive drugs. --With assistance from John Tozzi. (Updates with new information throughout.) More stories like this are available on
&w=3840&q=100)
Business Standard
3 hours ago
- Business Standard
10 years as CEO, $1 billion richer: Sundar Pichai rides Alphabet's AI wave
Sundar Pichai, the Indian-origin CEO of Google's parent company Alphabet, has officially joined the billionaire ranks. On Thursday, Pichai's net worth crossed the billion-dollar mark, driven by a strong rally in Alphabet's stock and continued business success. According to the Bloomberg Billionaires Index, Pichai's estimated wealth stands at $1.1 billion. Forbes' Real-Time Billionaires list puts it slightly higher at $1.2 billion. Dip in salary, but net worth rises Interestingly, Pichai's overall compensation dropped sharply in 2024. According to Alphabet's annual report, he earned $10.72 million this year — down from a staggering $226 million in 2022. The steep fall was due to the absence of a large stock grant he received in 2022, which is awarded once every three years. Despite the drop, his base salary has remained steady at $2 million annually. The rest of his earnings typically come from stock-based compensation and perks. Alphabet also increased its spending on his personal security in 2024. The company spent $8.27 million — 22 per cent more than last year — on services including residential security, monitoring, consultation, and travel protection. Alphabet's stock rally fuels billionaire status Pichai's growing wealth is largely tied to Alphabet's robust performance in the second quarter of 2024. The tech giant reported better-than-expected profits of $28.2 billion on revenue of $96.4 billion. Following the earnings announcement, Alphabet's stock surged by 4.1 per cent — its largest single-day gain in two months. This bump also lifted Pichai's net worth, as he holds a 0.02 per cent stake in the company. Alphabet is currently valued at about $440 billion. The latest financial results reflect the company's growing investment in artificial intelligence, which is boosting multiple business verticals, including Cloud, YouTube, and Google Play. Alphabet to boost AI investments to $85 bn Alphabet plans to significantly increase capital spending in 2025 to keep up with the booming demand for AI services. The company now estimates $85 billion in capital expenditures — $10 billion more than its previous forecast, Bloomberg reported. Though the initial reaction in after-hours trading was mixed, investors regained confidence after Pichai clarified that the hike is essential to meet customer needs in the AI space. Sales excluding traffic acquisition costs climbed to $81.7 billion, beating Bloomberg's analyst average estimate of $79.6 billion. From Tamil Nadu to Silicon Valley Born in Tamil Nadu, Pichai earned a scholarship to Stanford University in 1993. He joined Google in 2004 and rose through the ranks, leading teams behind Chrome and Android before becoming the chief executive in 2015. Despite his billionaire status, Pichai holds a relatively small stake in Alphabet and most of his wealth is in cash. Alphabet co-founders Larry Page and Sergey Brin remain among the world's wealthiest individuals, with net worths of $171.2 billion and $160.4 billion, respectively.
