Civil Plaintiff
Lyft Agrees to a $25 Million Shareholder Settlement Over Safety Allegations
Lyft has agreed to a $25 million settlement with shareholders over allegations that it failed to adequately disclose threats to its reputation and business ahead of going public.
The “misstatements and omissions” before its initial public offering include not disclosing the “existential risk” presented by reports of drivers assaulting passengers on the platform, as well as safety issues concerning its bikeshare business.
The preliminary settlement agreement, detailed in a court filing Thursday, is pending approval by Judge Haywood S. Gilliam, Jr. of the Northern District of California. Notably, the money would go to shareholders, not directly to the individuals who’ve been victim to and reported such incidents.
