Uber’s world wide legal troubles continue to mount as lawyers in Ontario, Canada announced a $400 million class-action lawsuit against the company on behalf of limo and taxi drivers across the province. The lawsuit comes on the heels of the company’s recent announcement of a major expansion to its UberX ride service in Ontario.
The law firm of Sutts, Strosberg, LLP issued a press release stating that the lawsuit is seeking damages as well as an injunction that will restrict UberX from operating in the province of Ontario.
Attorney Jay Strosberg, a noted Canadian class action lawyer, stated in the press release that, “The Plaintiff alleges that UberX and UberXL have created an enormous marketplace for illegal transportation in Toronto."
It is alleged in the statement of claim that UberX has violated Ontario’s Highway Traffic Act by permitting unlicensed drivers to pick up and transport passengers for compensation. Because of this violation, licensed taxicabs, limousine owners and drivers are losing millions in revenues throughout Ontario.
The lawsuit has yet to be certified as a class-action and the allegations have not yet been argued in court. Generally, a lawsuit has to be certified in order for members who are deemed eligible – in this instance the taxi and limo drivers – can join the lawsuit.
The announcement of this class-action comes as this controversial service offered by UberX, which involves the use of private drivers using their own vehicles to pick up and drop off passengers, begins operating in London, Guelph, Hamilton as well as the Waterloo Region.
The relationship between Uber and the city of Toronto, Ontario's capital, and its taxi drivers has recently become quite tense, with taxi drivers making threats of shutting down cities, which similarly happened in Paris, if the city does not crackdown on Uber.