Uber reaches deal to avoid election confrontation with lawyers

Uber was in the hot seat as two measures that target the ride-hailing company’s financial liabilities officially qualified for the November ballot — for less than 24 hours. On Thursday afternoon, the ride-hailing company and a group of trial attorneys issued a joint statement that they had reached an agreement and plan to throw out their battling ballot measures.

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Uber and a group of personal injury attorneys spent tens of millions campaigning to qualify the two measures to be on the ballot this November. The California Secretary of State’s office announced Wednesday evening that both had qualified. One that was advertised as a pro-consumer proposal and backed by Uber sought to reduce the amount of money personal injury lawyers could get in car crash settlements, and the other proposed to increase Uber and other ride-hailing companies’ legal liability for sexual misconduct claims. The latter was backed by an attorney advocacy group.  

But, the very next day, the groups agreed to kill the proposals.

“Both sides agree: Californians deserve a system that’s safe, fair, and accountable. This agreement protects patients from unnecessary treatment or getting overcharged, ensures access to medical care and legal representation, and strengthens safety measures,” said a joint statement from Uber and the Consumer Attorneys of California, the Los Angeles Times reported Thursday. Representatives for both sides told the LA Times that they have a week for the agreement, which the LA Times said included Uber agreeing to bolster its safety protocols and the lawyers agreeing to limit medical claims, to be codified into a bill. If that doesn’t happen, both groups will proceed with their ballot measures, the Times reported.

The first ballot measure emerged late last year from Uber. The company filed a proposal in October that would give victims of car accidents who sue for personal injury 75% of any legal payout, and cap what attorneys can take home in contingency fees to 25%. (Typically, personal injury attorneys can take home 30% to 40% of settlements). Uber framed the proposal as a protective measure against predatory lawyers, and claimed these lawyers use misleading ads promising large settlements to attract customers when in reality the lawyers take home much of the money. 

“Every year, lawyers spend $2.5 billion on misleading ads promising ‘big settlements’ to automobile accident victims. But behind the billboards is a scam hurting Californians,” the group A More Affordable California, funded by Uber, says on its website. The site also claims that “billboard lawyers” can encourage victims to get medical care that inflates their settlement values but leaves the clients in debt.

The proposal sparked aggressive opposition from attorneys. Opponents of the measure say Uber’s idea would end up harming consumers in the end, and that it could discourage lawyers from taking on clients.

Uber spent tens of millions on its ad campaign, including securing a commercial slot during the Super Bowl.

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The second initiative was brought forth by the Consumer Attorneys of California in a retaliatory move. If passed, it would have required Uber and other ride-hailing companies to improve safety standards to ensure that passengers are protected against sexual misconduct. The key change would be that ride-hailing companies would be classified as “common carriers” in the same way buses and taxis are. It would also have required background checks on drivers, and ride-hailing companies would have had increased liability for sexual misconduct by drivers. 

The Consumer Attorneys coalition similarly poured millions into its campaign for this measure, under a campaign named Alliance Against Corporate Abuse. 

Uber has faced intense scrutiny over driver behavior in recent years. A 2025 New York Times investigation revealed data that showed that between 2017 and 2022, the company had received over 400,000 reports of sexual assault or misconduct, equating to an allegation of sexual assault or misconduct roughly every eight minutes.