LYFT Inc (LYFT)

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Lyft reaches $25 million settlement over claims it hid safety problems
By: Reuters | June 16, 2022

Lyft Inc has reached a $25 million settlement to resolve shareholder claims that the ride-hailing company concealed safety problems, including alleged sexual assaults by drivers, prior to its 2019 initial public offering.

The preliminary settlement was filed on Thursday with the federal court in Oakland, California, and requires approval by U.S. District Judge Haywood Gilliam Jr.

Lyft (NASDAQ:LYFT) denied wrongdoing in agreeing to settle.

The San Francisco-based company became the first ride-hailing business to go public when it raised $2.34 billion in its March 2019 IPO.

Investors who bought shares in the IPO sued less than two months later, accusing Lyft of concealing safety problems from its registration statement in a bid to appear more socially responsible than its main rival, Uber Technologies (NYSE:UBER) Inc.

Lyft's share price fell below the $72 IPO price less than two weeks after trading began on March 29, 2019, and never recovered.

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