Uber Stock Drops Amid Major DOJ Lawsuit Over Disability Discrimination

Uber Technologies stock closed down 1.03% at $97.83 on Tuesday after hitting a 52-week high earlier this week, as investors digested news of a federal disability discrimination lawsuit.

The Department of Justice filed a $125 million lawsuit against the ride-hailing giant on September 11, alleging systematic discrimination against passengers with disabilities. The lawsuit, filed in the Northern District of California, claims Uber violated the Americans with Disabilities Act by routinely denying rides to customers with service dogs and wheelchairs while charging illegal cancellation and cleaning fees.

Federal Lawsuit Targets Core Business Practices

The DOJ lawsuit presents serious allegations about Uber’s treatment of disabled passengers. Assistant Attorney General Harmeet Dhillon stated that “blind riders have suffered repeated ride denials by Uber because they are traveling with a service dog”. The suit details instances where multiple drivers cancelled rides for disabled passengers within minutes of learning about their needs.

According to the complaint, drivers have refused to transport children with wheelchairs, charged illegal cleaning fees for service animal shedding, and imposed cancellation fees after denying service. The lawsuit seeks court orders forcing Uber to modify its policies and comply with ADA requirements.

Uber “fundamentally disagrees” with the allegations and maintains a “zero-tolerance policy for confirmed service denials”. The company stated that drivers must acknowledge accessibility laws and face permanent deactivation for policy violations.

Despite the lawsuit news, Uber shares have performed strongly recently, reaching a 52-week high of $99.70 on Monday. The stock has gained 62.42% year-to-date and 36.98% over the past 12 months, supported by strong earnings and autonomous vehicle partnerships.

Institutional investors continue showing confidence, with major shareholders including Vanguard Group (167.63 million shares), BlackRock (139.35 million shares), and Morgan Stanley (123.85 million shares). Institutional ownership represents approximately 80.24% of total shares.

Analyst Outlook Remains Positive

Wall Street analysts maintain largely bullish sentiment on Uber despite the legal challenges. The stock carries a consensus “Moderate Buy” rating with an average price target of $103.06. Recent upgrades include Wells Fargo raising its target to $127 and Evercore ISI setting a $150 target.

The company’s strong financial position includes $8.6 billion in cash and a recently announced $20 billion share buyback program. Uber reported free cash flow of $2.5 billion in the second quarter, up 44% year-over-year, supporting its growth strategy and shareholder returns.