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Uber Kills Arbitration Clause for Sex Misconduct Claims

As part of its morality redemption tour, Uber announced Tuesday it will allow claims of sexual misconduct by customers to be heard in open court as opposed to forcing claims to be handled privately in arbitration. The move, which fits into CEO Dara Khosrowshahi’s “do the right thing” rally cry, came ahead of a hearing in a lawsuit seeking class-action status filed by more than a dozen Uber customers who claimed to have been sexually harassed by drivers. Uber also said such customers who settle claims with the company won’t be required to sign a confidentiality agreement.

Uber’s nemesis Lyft followed by removing its own arbitration and confidentiality requirements for such claims by passengers. (These moves may push companies beyond the ride-hailing industry to do the same.) And both companies pledged to work together to publicly release data on sexual assault incidents that happen during their rides—and do so in a way that counts such incidents using the same definition. The last part was agreed upon in a rare feel-good moment on Twitter.

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