California Attorney General Xavier Becerra and San Francisco District Attorney George Gascón announced on Wednesday (Sept. 26) that they have reached a settlement with Uber Technologies Inc., in which Uber will pay $148 million to resolve allegations that it violated state laws pertaining to data breach reporting.
In a press release, the two AGs said the settlement also covers charges that Uber violated reasonable data security laws with its 2016 breach of driver and customer information. Uber is accused of exposing the data of 57 million users and paying hackers to hide the breach instead of reporting it to law enforcement and regulators.
“Uber’s decision to cover up this breach was a blatant violation of the public’s trust,” said Becerra in the press release announcing the settlement. “The company failed to safeguard user data and notify authorities when it was exposed. Consistent with its corporate culture at the time, Uber swept the breach under the rug in deliberate disregard of the law. Companies in California and throughout the nation are entrusted with customers’ valuable private information. This settlement broadcasts to all of them that we will hold them accountable to protect their data.”
The nationwide settlement, which California helped to lead, calls for a $148 million penalty payment by Uber, benefiting all 50 states and the District of Columbia. California will divide its $26 million share of the settlement between the California Attorney General’s Office and the San Francisco District Attorney’s Office, the two said in the press release. The settlement also includes additional terms to prevent future breaches and to reform Uber’s corporate culture.
“We wholeheartedly support innovative business models, but new ways of engaging in business cannot come at the expense of public safety or consumer privacy,” said Gascón. “This settlement today demonstrates what happens when all of us in law enforcement work together. My office will continue to collaborate closely with the Attorney General to protect consumers both in San Francisco and the rest of California.”