California prosecutors sue Uber; Lyft settles

Dec 9, 2014 5:42 PM by News Staff

SAN FRANCISCO (AP) - California prosecutors have filed a lawsuit against Uber over the ridesharing company's background checks and other allegations, adding to the popular startup's worldwide legal woes.

Meanwhile, San Francisco County District Attorney George Gascon said Tuesday that Uber competitor Lyft has agreed to pay $500,000 and change some of its business practices to settle its own lawsuit.

Los Angeles District Attorney Jackie Lacey partnered with Gascon in a probe of the nascent ridesharing industry. A third company - Sidecar - is still under investigation and could face a lawsuit of its own if it can't reach an agreement with prosecutors.

Uber faces similar legal issues elsewhere as it tries to expand in cities, states and countries around the world.

All three companies are based in San Francisco.

Copyright 2014 The Associated Press. All rights reserved.


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