Lyft agrees to $25 million settlement with shareholders over safety allegations
2 min readThe “misstatements and omissions” in advance of its first community offering include things like not disclosing the “existential chance” introduced by studies of drivers assaulting travellers on the system, as well as security issues regarding its bikeshare business enterprise.
The preliminary settlement agreement, specific in a court docket submitting Thursday, is pending approval by Choose Haywood S. Gilliam, Jr. of the Northern District of California. Notably, the income would go to shareholders, not right to the people today who’ve been victim to and documented these kinds of incidents.
The shareholders also took concern with Lyft’s promises close to its market place share development in the direct up to heading community.
“Lyft cultivated a model image as a safer, a lot more socially conscious rideshare substitute with a aim on attractive to female travellers,” Thursday’s submitting reads. “Just after the IPO, nevertheless, scores of reports came to gentle of Lyft motorists sexually assaulting their travellers. Dozens of persons introduced promises from Lyft similar to driver sexual misconduct in the months adhering to the IPO.”
The shareholders say Lyft unsuccessful to disclose this in its IPO registration paperwork.
