By on October 11, 2017

uber volvo

Uber Technologies is about to be probed to a degree that would make even the most compliant alien abductee blush. The company is now looking at a minimum of five criminal investigations from the U.S. Justice Department regarding claims of bribes, illicit software usage, unfair marketing practices, corporate espionage, questionable pricing strategies, and theft of a competitor’s intellectual property.

The ride-hailing firm is also involved in dozens of lawsuits from from customers and employees — and one very public suit with autonomous research rival Waymo. But Uber’s skirting of the law was what made it so profitable to begin with. Its take-no-prisoners attitude may have been the thing that ultimately ousted founder and CEO Travis Kalanick and severely tarnished its corporate image, but it’s also an aspect that ensure its success. Still, nobody likes learning how the sausage is made and every look behind Uber’s curtain revealed another fresh horror the press couldn’t resist mentioning — including yours truly. (Read More…)

By on September 10, 2017

Uber At Igby's In Cincy Circa April 2014

Uber has undertaken a concerted effort to clean up its corporate act, but holdovers from its more aggressive era continue getting the ride-hailing firm into trouble. Currently, the Federal Bureau of Investigation is checking into Uber Technologies Inc. to see if it had used software to illegally interfere with its competition from 2014 to 2016.

The program in question, which Uber calls “Hell,” was the focus of an April lawsuit where a former Lyft driver asked for $5 million in damages. By creating dummy accounts, Hell is supposedly able to track the areas where its rivals are doing business and better-compete by adjusting pricing or offering discounts to their customers. It’s also a way to see if Uber employees are double dipping by simultaneously working for Lyft.

It’s not the first time the company has been cited for playing on the fringes of legality. In addition to a high-profile court case against Alphabet’s Waymo over trade secrets, Uber has also been accused of testing self-driving vehicles without state approval, and using its “Greyball” software to hide from police and public officials. (Read More…)

By on August 11, 2017

wells fargo

California’s insurance regulators have launched an investigation into Wells Fargo following the bank’s confession that it forced hundreds of thousands of auto loan borrowers to pay for insurance policies they didn’t need and, in many cases, were unaware of.

There’s also a congressional investigation underway, where U.S. senators are asking the company basic questions like who was affected, how broadly, whether they get a refund, and why the hell this occurred in the first place.

Unlike JPMorgan Chase or Bank of America, Wells Fargo’s auto loan contracts allowed the lender to obtain collateral protection insurance on a customer’s behalf if they failed to buy liability coverage themselves — or if the bank assumed they hadn’t. It’s not common practice and, when it causes paying customers to default and have their vehicle repossessed, it’s not difficult to see why.  (Read More…)

By on August 9, 2017

Takata-jpg

Takata, the airbag supplier whose cost-cutting measures ended up killing people, issued a request on Wednesday to suspend lawsuits against automakers filed by those injured by its faulty inflators.

Without the injunction, Takata claims the rampant litigation would prohibit management from completing the sale of the company’s viable operations to Key Safety Systems for $1.6 billion, threatening the supply of air bag inflators meant to replace already recalled ones (which may include all previously repaired units, pending an EPA investigation).

Obviously, the injured parties want restitution. Plaintiffs’ lawyers call the proposed injunction “an abuse of the bankruptcy laws for the benefit of all of the world’s largest automobile manufacturers.” The fear is that Takata’s request will delay consideration of numerous lawsuits for several months to a year, which is a long time to wait when you’ve been wronged.  (Read More…)

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