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June 21, 2016

Uber Successful in Getting Added to Lawsuit Against CEO; Could Force Case into Arbitration

Uber succeeded in getting a federal judge to add the company as a defendant in an antitrust lawsuit against CEO Travis Kalanik over the company’s surge pricing practices. By making Uber a “necessary party” to the suit, it becomes more likely that the case will head to arbitration.

“While [the] plaintiff now pretends that he ‘seeks no relief whatsoever against Uber,’ such an assertion is at odds with any fair reading of [the] plaintiff’s claim,” wrote Judge Jed Rakoff.

Fortune reports that Judge Rakoff “suggested that Meyer might have sued only Kalanick to avoid a clause in his user agreement requiring that disputes with San Francisco-based Uber be arbitrated.”

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