By Julia Cheever : sfbay – excerpt
A credit union that helped The City of San Francisco sell taxi medallions has sued a city agency over financial losses caused by the collapse in value of the medallions amid the rise of ride-booking services such as Uber and Lyft.
The lawsuit was filed against the San Francisco Municipal Transportation Agency in San Francisco Superior Court on Tuesday by the nonprofit, member-owned San Francisco Federal Credit Union.
It seeks $28 million in compensation plus an order requiring The City to buy back unsellable medallions for the $250,000 purchase price.
The lawsuit charges the SFMTA violated alleged promises to keep the taxi business vibrant, shore up the value of the medallions and buy back any medallions that it couldn’t resell.
Instead, the law suit claims:
“…[SFMTA] has elected to stick its head in the sand while the credit union and hardworking taxi driver medallion owners are saddled with all the burdens.”… (more)