12:05 PM EDT, 07/22/2024 (MT Newswires) -- A group of Uber Technologies ( UBER ) shareholders who allege it misled investors prior to a May 2019 initial public offering is asking for a federal court in California for preliminary approval of their $200 million settlement agreement with the ride-hailing services company.

The investor group claimed that the company's IPO prospectus contained materially false or misleading statements and omissions of fact, including Uber's ( UBER ) rising expenses and losses, as well as allegations it sidestepped local rules for operating in certain jurisdictions and suppressing information about passenger safety and driver background checks.

The company and the plaintiffs accepted a mediator's proposal on April 23 to settle the legal dispute and last week began executing on the term sheet for the confidential agreement and its stipulations, the filing showed.

According to the filing, the plaintiffs are planning to begin notifying other investors about the proposed settlement over the next few weeks, with the court expected to schedule a settlement hearing at its convenience, but no sooner than 100 days following the entry of the preliminary approval order.

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