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Lyft reaches $25 million settlement over claims it hid safety problems -Breaking


© Reuters. As rideshare drivers rally in support of California’s law, Lyft’s pick-up location is left empty, they demonstrate their demand for Lyft to follow California’s laws and give drivers basic employee rights.

(Reuters] -Lyft Inc. has settled a $25 Million settlement with shareholders to address claims that Lyft Inc. concealed safety concerns, including alleged assaults of drivers by rider, before its initial public offering in 2019.

On Thursday, the preliminary settlement was submitted to the federal court at Oakland, California. It requires U.S. District Judge Haywood Gilliam Jr. approval.

Lyft (NASDAQ: ) Denies wrongdoing by agreeing to settle.

San Francisco-based Uber became the first ride-hailing firm to go public with its $2.34 billion March 2019 IPO.

Investors who had purchased shares in the IPO filed suit less than 2 months later. Lyft was accused by investors of concealing safety concerns from its registration statements in an attempt to seem more socially responsible that its main competitor, Uber Technologies (NYSE 🙂 Inc.

Lyft’s shares fell to $72 IPO prices less than 2 weeks after trading started on March 29, 2019. They never recovered.