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Philadelphia Taxi Companies Take Uber To Court

By Pat Loeb

PHILADELPHIA (CBS) -- Dozens of Philadelphia taxi companies are asking a federal judge to shut down their rival, Uber car service. They accuse Uber of racketeering and wire fraud.

The cab owners mince no words in accusing Uber of operating "unlawfully," "in bad faith" and with "evil or rancorous motive and ill will."

"Not since the days of bootlegging has there been a criminal enterprise so brazen," the suit reads. "Their outrageous acts are legion."

The suit refers to Uber cars as "gypsy cabs," that have undermined the state's regulatory scheme and the financial state of the entire industry causing, the suit claims, immediate and irreparable harm to the taxi companies, for which they seek unspecified damages, as well as an injunction.

The suit says Uber meets the definition of a corrupt organization under the RICO statute and says the payment scheme to drivers amounts to wire fraud.

Uber says it will vigorously defend the rights of riders to enjoy competition and choice.

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