The Justice Department confirmed it has launched a criminal probe into the Uber ride sharing company Wednesday, after it was discovered the company had concealed a massive data breach in 2016.
The DOJ unsealed a Nov. 22 letter Wednesday detailing the order to start a criminal probe into Uber, the first confirmation the company may face federal charges for trying to hide the fact that they’d been hacked. Hackers stole license numbers, emails, and other private information from millions of Uber customers and drivers in 2016, triggering the company to pay $100,000 in ransom. Uber withheld the information from affected parties for more than a year.
The U.S. is one of several countries pursuing regulatory action against the embattled company, which has faced several leadership changes throughout 2017.
Uber CEO Dara Khosrowshahi, who took over the helm for effectively ousted co-founder Travis Kalanick in August, said “none of this should have happened, and I will not make excuses for it.”
“While I can’t erase the past, I can commit on behalf of every Uber employee that we will learn from our mistakes,” he continued in a blog post, after describing how the company is starting an internal investigation into how such a breach, and the subsequent coverup could happen.
Chicago also announced a lawsuit against Uber on behalf of residents who were affected by the data breach. Chicago’s lawsuit, filed in tandem with the surrounding Cook County, seeks $10,000 in damages for each resident who was affected by the breach, and an additional $10,000 for every day they continued to be affected. The city also demands $50,000 for breaking the Illinois Consumer Fraud and Deceptive Business Practices Act, and a further $10,000 for each resident over the age of 65 who was affected.
The Nov. 22 letter also indicates that the DOJ is investigating potential charges unrelated to the hack. A former Uber security specialist claimed to DOJ investigators that Uber used secret communications channels in order hide any technology stolen from rival companies, according to the Star Tribune.
The accusation relates to Uber rival Waymo’s lawsuit against the company for stealing technology and trade secrets, which is still ongoing.
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