Later On

A blog written for those whose interests more or less match mine.

The arrogance of Uber knows no bounds, and a Federal judge is fed up

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Sam Biddle reports in The Intercept:

In December of last year, Yale environmental researcher Spencer Meyer filed suit against Uber, alleging price fixing by Uber’s drivers and founder in violation of federal antitrust law. Hardly the first person to accuse Uber of corporate malfeasance, Meyer nonetheless became the target of private investigators, working for a security company hired by Uber, who attempted to dig up derogatory information — an act the district judge hearing the case, Jed Rakoff, has now, in a 31-page order, called “blatantly fraudulent and arguably criminal.”

Emails turned over by Uber on the judge’s instructions and summarized in the order show that on the day Meyer filed suit, Uber counsel Salle Yoo contacted the company’s chief security officer, asking, “Could we find out a little more about this plaintiff?”

Uber investigations chief Mat Henley then selected a New York-based private investigative firm called Ergo, also known as Global Precision Research, and began working with one of its executives, Todd Egeland, Henley said in a sworn deposition. Egeland’s online bios state openly that he is a 28-year veteran of the CIA with experience in counterintelligence and cyberthreats.

From the very start, the Uber-Ergo deal was set up to avoid potential scrutiny: Court-obtained documents reveal that both parties used Wickr, a self-deleting messaging app, and encrypted email “to avoid potential discovery issues,” although, as seen in the email message below, from Henley to two Ergo executives, including Egeland, some of the material was eventually discovered. . .

Continue reading.

Later in the article:

. . . In his ruling, Judge Rakoff described the investigation as a “dismal incident”:

It is a sad day when, in response to the filing of a commercial lawsuit, a corporate defendant feels compelled to hire unlicensed private investigators to conduct secret personal background investigations of both the plaintiff and his counsel. It is sadder yet when these investigators flagrantly lie to friends and acquaintances of the plaintiff and his counsel in an (ultimately unsuccessful) attempt to obtain derogatory information about them.

Rakoff goes on to highlight a litany of irresponsible and “arguably criminal” acts on the part of Ergo and Uber:

Moreover, if Ergo’s misrepresentations to sources were not sufficient evidence of the applicability of the crime-fraud exception, two additional features of Ergo’s conduct highlight their conduct’s impropriety. First, although Ergo was located in New York, Ergo, as previously noted, did not possess a private investigator’s license to engage in its investigative activities, as required by New York law. … Violation of this licensing provision may itself be prosecuted as a criminal misdemeanor. … Ergo seeks to explain this violation as, variously, an “oversight of a small company with limited resources,” … or as a product of Ergo’s understanding that its work did not “fit the traditional plain meaning of private investigation work in New York.” … But if concocting fictitious stories to induce acquaintances of a client’s litigation adversary to shed light on the adversary’s employment, finances, family life, and motivation for bringing a lawsuit does not constitute private investigation work, then the Court does not know what would.

Rakoff notes that . . .

Read the whole thing.

You know, this sort of behavior would be sharply curtailed if CEOs went to prison for it.

Written by LeisureGuy

30 July 2016 at 11:08 am

Posted in Business, Law

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