Governor Gavin Newsom has signed a last-minute legislative agreement between Uber Technologies Inc and California trial attorneys, ending a potential ballot measure showdown that involved over $50 million in combined advertising spending. The agreement, embodied in SB 623, introduces new safety requirements for ride-hailing companies while tightening rules on medical lien practices that Uber says inflate car crash lawsuit payouts and reduce victims' settlements. Both Uber and the Consumer Attorneys of California agreed to withdraw their competing November ballot initiatives following the signature.

Safety and Liability Provisions

Under the terms of the deal, Uber will enhance driver background checks and adopt additional safety standards. Trial attorneys indicated these measures could help prevent sexual assaults and other misconduct by ensuring drivers do not have histories of DUIs, child abuse convictions, sexual battery, or violent felonies. While the legislation aims to curb unethical practices by attorneys and doctors, it does not impose firm caps on attorneys' fees in car crash lawsuits, a limit Uber had initially sought. The agreement specifically addresses cases involving Uber and Lyft, whereas the previously proposed ballot measure would have impacted all motor vehicle cases.

Financial Context and Strategic Shift

Consumer Watchdog previously reported that Uber was stockpiling $12 billion in a self-funded insurance reserve, suggesting the company sought to remove liability for car crashes to allocate funds toward a robotaxi rollout. The organization criticized Uber for citing high insurance costs to seek limited liability while simultaneously overcharging itself to build the reserve. Despite the new legislation, Uber retains liability for robotaxis and any resulting injuries or deaths.

Uber CEO Dara Khosrowshahi stated the company is evolving from a ride-hailing platform reliant on human drivers into an open marketplace combining gig workers with third-party autonomous vehicle fleets. Rather than building its own self-driving cars, Uber is pursuing a strategy to integrate robotaxis from multiple automakers and technology partners. The California Assembly and Senate overwhelmingly approved the bill before the deadline to remove the competing measures from the November election.

Former Speaker Nancy Pelosi and Pershing Square Capital Management CEO Bill Ackman share four stocks in their portfolios, including three members of the Magnificent 7. The common holdings are Uber Technologies, Alphabet Inc, Amazon.com Inc, and Microsoft Corp. Pelosi's portfolio is managed by her husband, Paul Pelosi, while Ackman's positions are tracked through his hedge fund.

Shared Holdings

The four stocks owned by both Pelosi and Ackman include recent additions and long-term positions. Pelosi disclosed Uber as one of the two newest positions in her investment portfolio. Her husband bought 200 call options of Uber with an expiration date of March 19, 2027, and a strike price of $50. The transaction was completed on May 29, 2026. Ackman disclosed owning 29,958,771 Uber shares at the end of the first quarter, representing 16% of assets in the Pershing Square fund.

Pelosi disclosed buying 50 call options of Alphabet Class A stock (GOOGL) on Jan. 14, 2025. The options were exercised earlier this year for 5,000 shares. Ackman disclosed owning 311,726 GOOG shares and 32,376 GOOGL shares in the Pershing Square fund at the end of the first quarter. Both positions were cut by 95% in the first quarter.

Pelosi disclosed buying 50 call options of Amazon.com on Jan. 14, 2025. Those options were exercised in January 2026 for 5,000 shares. Ackman disclosed owning 11,451,981 Amazon shares in the first quarter, representing 17% of the Pershing Square Capital Management portfolio. The e-commerce giant was a new purchase by Pershing Square in 2025.

Pelosi last traded Microsoft stock with a sale of 5,000 shares in July 2024. Ackman announced Microsoft as a new purchase in the first quarter, when Pershing Square added 5,654,078 MSFT shares, worth around $2.09 billion at the end of March. The stock was around 15% of the company’s assets.

Investment Strategies

Pelosi's husband has a history of buying call options that are in the money and have expiration dates of a year from the purchase date. He later exercises the options into common stock. Investments are often made in the technology sector, favoring large-cap names.

Ackman is a value and activist investor, known for taking large stakes in companies with dominant positions in their sectors and for pushing for changes to unlock shareholder value. Three of the four stocks Pelosi and Ackman have in common are members of the Magnificent 7 and among the most valuable companies in the world.