HomeTop StoriesLyft agrees to $25 million settlement with shareholders over security allegations Gadgetfee

Lyft agrees to $25 million settlement with shareholders over security allegations Gadgetfee

The “misstatements and omissions” earlier than its preliminary public providing embody not disclosing the “existential danger” introduced by reviews of drivers assaulting passengers on the platform, in addition to questions of safety regarding its bikeshare enterprise.

The preliminary settlement settlement, detailed in a courtroom submitting Thursday, is pending approval by Choose Haywood S. Gilliam, Jr. of the Northern District of California.

Lyft (LYFT), which continues to disclaim the allegations in line with the submitting, didn’t instantly reply to a request for remark.
The securities swimsuit, first filed in 2019 after the corporate went public, alleged a disconnect between Lyft’s public picture and its dealing with of sexual assault incidents.

“Lyft cultivated a model picture as a safer, extra socially acutely aware rideshare various with a give attention to interesting to feminine passengers,” Thursday’s submitting reads. “After the IPO, nonetheless, scores of reviews got here to mild of Lyft drivers sexually assaulting their passengers. Dozens of people introduced claims in opposition to Lyft associated to driver sexual misconduct within the months following the IPO.”

The shareholders say Lyft did not disclose this in its IPO registration paperwork.

Lyft in the end launched its first-ever security report in October 2021 during which it disclosed it acquired 4,158 reviews of sexual assault on its platform from 2017 to 2019. The disclosure got here greater than three years after Lyft and its rival Uber (UBER) dedicated to placing out security reviews disclosing incidents of sexual assault and abuse on their platforms after a 2018 CNN investigation into the problem.
Each firms proceed to face numerous authorized claims over alleged security incidents on their platforms. A small variety of claims that Lyft is dealing with are slated to go to trial by means of a coordinated continuing later this yr.
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