Uber Files Federal Lawsuit Accusing LA Lawyers, Surgeon of Inflated Insurance Claims

Uber Technologies has filed a lawsuit in California accusing two Los Angeles law firms and a spinal surgeon of conspiring to inflate medical claims through fabricated injuries and overpriced surgeries related to minor rideshare accidents between 2019 and 2024. The company alleges the defendants directed passengers to pre-selected medical providers who submitted inflated bills, exploiting the state's $1 million rideshare insurance coverage to extract larger settlements, sometimes with medical bills up to ten times the norm. This is Uber's third lawsuit this year targeting fraudulent insurance claims that have cost it millions in legal fees and settlements, contributing to higher costs for riders and drivers. Uber is also advocating for legislation to lower rideshare insurance coverage limits to mitigate these issues. The Downtown L.A. Law Group and other defendants have not publicly responded to the allegations. Despite these legal challenges, Wall Street analysts maintain an overall positive outlook on Uber's stock, with an average price target suggesting modest upside potential amid mixed valuation metrics.