An Uber-backed proposed ballot question that would have significantly capped attorney fees was effectively blocked on Monday by Nevada Supreme Court justices who, in a unanimous opinion, ruled in favor of a group backed by trial lawyers that had sought to stop the measure.

The ruling is a blow to Uber, which had poured millions of dollars into qualifying and promoting the initiative. Proponents said the petition would reduce payouts to “billboard attorneys” who just want to sue to make money and would free up more settlement money for plaintiffs. Opponents contended that the measure was an effort by Uber to hinder sexual misconduct lawsuits by making it harder for victims to find representation.

As a proposed statutory initiative, it would have gone first to the 2025 legislative session and potentially to the 2026 ballot had lawmakers not acted on it.

The decision reversed a lower court’s decision and found the description of effect — a 200-word summary of the petition’s implications attached to signature-gathering forms — was legally “insufficient” and could mislead voters. Justices wrote that the description’s mention of medical malpractice recovery limits and cases where private attorneys represent the state invoked confusion, as it was unclear if the new cap would affect those kinds of cases.

“The description of effect thus leaves potential signatories with more questions about the [i]nitiative's effect than answers,” the order read.

The initial lawsuit was filed in April by the Nevada Justice Association (a group of state trial lawyers) and a group representing Uber sexual assault survivors. They argued that the petition’s description of effect did not include the fact that the 20 percent cap would reduce the incentive for lawyers to take on their cases. 

A Carson City district court judge dismissed the suit in May, leading to the appeal to the state Supreme Court.

Representatives for the group promoting the petition, Nevadans for a Fair Recovery, wrote in a statement that they were disappointed with the court’s decision, calling it an “unprecedented” move against victims and voters and saying that “justices have protected a system that enables attorneys to fly on private jets, while everyday Nevadans foot the bill.”

“Today’s verdict is not the end of our efforts. We plan to pursue an aggressive campaign to educate voters about how billboard attorneys have rigged the system to put their interests over Nevadans,” the statement read.

On behalf of the group that filed the lawsuit, attorney Deepak Gupta celebrated the decision, noting that it would have implemented an “unprecedented” limit on the ability of everyday people to find representation. 

“This victory ensures that Nevadans who are harmed, injured, or cheated will retain their fundamental right to seek justice through the courts,” Gupta said in the statement.

If passed, the petition, which garnered enough signatures to head to the 2025 legislative session, would have resulted in Nevada having the strictest attorney fee caps in the country. Two states have caps on attorney fees in civil cases: Oklahoma, which limits those fees to 50 percent of all rewards; and Michigan, which has a 33 percent cap.

Uber — which contributed $5 million to the petition effort last year — is entangled in hundreds of lawsuits as part of a “multidistrict litigation” effort in California alleging that it failed to protect passengers from sexual abuse. The company has also faced lawsuits in Nevada, including allegations that a driver facilitated the abduction and sexual assault of a 14-year-old girl and that a driver allegedly stalked a passenger for months.

This story was updated on 1/27/2025 at 1:03 p.m. to include a statement from the petitioner.

Riley Snyder contributed to this report.