Uber strikes blow against US taxi firms in racketeering lawsuit dismissal

Uber Technologies Inc on Thursday gained the dismissal of a racketeering lawsuit by 15 Connecticut taxi and limousine companies looking for to cease the ride-sharing firm from doing enterprise within the state. Ultimately, U.S. District Judge Alvin Thompson, in Hartford, Connecticut, ruled that the taxi and limousine companies were not able to sufficiently prove the allegations.

In their complaint, which also sought damages, the Connecticut companies said Uber succeeds because it can “prey parasitically on established taxicab and livery services” by cutting corners and ignoring laws meant to protect passengers.

Uber has tasted victory in the courts in the US.

The plaintiffs had also further argued that if Uber were to remain in operation, the company should follow the same licensing and safety regulations that they are obligated to follow. The state is claiming sovereign immunity against the accusations made by the cab companies. Racketeering charges are most often used by law enforcement officials targeting illegal organizations or crime syndicates. “We applaud the district court’s decision that will allow Connecticut drivers and riders to continue enjoying the economic and transportation benefits that Uber brings to the State”, said an Uber spokeman in an emailed statement.

Attorneys for the taxi companies did not immediately respond to a request for comment.

The dismissed lawsuit is similar to others filed against Uber in the US, where the company faces hostile reactions from incumbent players who see it as unfair competition.