Uber Technologies (UBER) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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The exclusive-forum provisions in Uber Technologies’ amended and restated certificate of incorporation designate the Court of Chancery of the State of Delaware and the federal district courts of the United States as the sole venues for specific legal disputes, potentially limiting stockholders’ capabilities to seek favorable judicial forums. While these provisions aim to centralize legal proceedings, they could deter shareholders from initiating lawsuits against the company and its directors or officers. If a competent jurisdiction rules these provisions unenforceable, Uber may face increased legal costs from disputes in multiple jurisdictions, posing a significant risk to its business operations. Consequently, these legal stipulations might affect stockholders’ rights and the financial stability of the company.
Overall, Wall Street has a Strong Buy consensus rating on UBER stock based on 35 Buys and 2 Holds.
To learn more about Uber Technologies’ risk factors, click here.
