Class Action Lawsuit Against Uber for Fraudulent 1099s

A class action lawsuit was filed in late March 2026 that UBER willfully made a false and fraudulent statement to the IRS when it filed an Information Return (1099-NEC) in 2021 with the IRS reporting that it paid $1,236.50 in nonemployee compensation to Plaintiff. 

The suit alleges “UBER's fraudulent tax filing is the product of its corporate policy of knowingly and willfully accepting driver-applicants using the PII (including SSNs) of other people to pass UBER's driver screening to become an UBER driver (“Unscreened UBER Driver”)”

 The suit seeks damages under IRC Sec. 7434 (Civil damages for fraudulent filing of information returns). Any action brought under IRC Sec 7434, upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the GREATER of

(A)   $5,000 or

(B)   the sum of—

(1) any actual damages sustained by the plaintiff as a proximate result of the filing of the fraudulent information return (including any costs attributable to resolving deficiencies asserted as a result of such filing),

(2) the costs of the action, and

(3) in the court's discretion, reasonable attorneys' fees.