Uber, Lyft drivers sue key driver advocacy group, alleging fraud, lack of transparency

A conflict that has been brewing for months in one of the state’s largest rideshare driver groups burst into the open last week when six former members sued the leader of the Minnesota Uber/Lyft Drivers Association.

The members are alleging that MULDA President Eid Ali, who helped unite the drivers and spearhead passage of a statewide rideshare bill, has misused the group’s funds and abruptly removed board members seeking transparency after the state bill passed in May.

The law, which goes into effect in December, establishes minimum pay rates for drivers, gives drivers the right to appeal deactivations and increases insurance requirements for rideshare companies.

It also requires rideshare companies like Uber and Lyft to contract with a nonprofit driver advocacy group — such as MULDA — to provide driver education, technical assistance and to handle deactivation appeals.

In the civil lawsuit filed August 30 in Hennepin County, the six members allege Eid came into the organization shortly after drivers began organizing, became their leader, and then used his position to take control of the organization.

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