Lyft agrees to settle $ 25 million with shareholders on safety claims

Pre-initial public offering “misrepresentations and omissions” include not disclosing the “existing risks” presented by reports of drivers attacking passengers on the platform and safety issues related to the bike-sharing business. ..

The preliminary settlement agreement detailed in court filed Thursday is awaiting approval by Judge Haywood S. Gilliam Jr. of Northern California.

Lyft ((((LYFT).Continuing to deny the allegations, according to the filing, did not immediately respond to the request for comment.
First securities proceedings filed in 2019 after the company PublishedClaimed a disconnect between Lyft’s public image and the handling of sexual assault cases.

“Lyft has fostered a brand image as an alternative to safer and more socially friendly ride sharing with a focus on appealing to female passengers,” said Thursday’s filing. “But after the IPO, numerous reports have revealed that Lyft drivers are sexually assaulting passengers. In the months following the IPO, dozens of individuals have been sexually illegal. I have filed a complaint against Lyft related to the act. ”

Shareholders say Lyft did not disclose this in their IPO registration documents.

Lyft finally First-ever safety report In October 2021, we disclosed that we received 4,158 reports of sexual assault on the platform between 2017 and 2019. This disclosure was made more than three years after Lyft and its rivals. Uber ((((UBER). Later promised to issue a safety report disclosing cases of sexual assault and abuse on their platform 2018 CNN Survey To the problem.
Both companies continue to face numerous legal claims for alleged safety issues on their platforms.A few claims Lyft is facing It will be brought to trial through a coordinated procedure later this year.

Source: www.cnn.com

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