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 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.