Prosecutors in San Francisco and Los Angeles on Tuesday filed a lawsuit against Uber over the ride-service company's background checks and other allegations, adding to the popular startup's worldwide legal challenges.
San Francisco County District Attorney George Gascón, meanwhile, said Uber competitor Lyft agreed to pay $500,000 and change some of its business practices to settle its own lawsuit.
Los Angeles District Attorney Jackie Lacey partnered with Gascón in a probe of the nascent ride-service industry. A third company — Sidecar — is still under investigation and could face a lawsuit of its own if it can't reach an agreement with prosecutors.
Uber faces similar legal issues elsewhere as it tries to expand in cities, states and countries around the world.
The companies use smartphone apps that allow passengers to order rides in privately driven cars instead of taxis. All three are based in San Francisco.