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Lyft concurs to $25 million agreement with shareholders over protection allegations



The “misstatements and omissions” ahead of its preliminary public providing come with now not disclosing the “existential chance” introduced through studies of drivers assaulting passengers at the platform, in addition to issues of safety regarding its bikeshare industry.

The initial agreement settlement, detailed in a court docket submitting Thursday, is pending approval through Pass judgement on Haywood S. Gilliam, Jr. of the Northern District of California. Significantly, the cash would pass to shareholders, indirectly to the people who’ve been sufferer to and reported such incidents.

Lyft (LYFT), which continues to disclaim the allegations in line with the submitting, didn’t in an instant 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 symbol and its dealing with of sexual attack incidents.

“Lyft cultivated a emblem symbol as a more secure, extra socially mindful rideshare choice with a focal point on interesting to feminine passengers,” Thursday’s submitting reads. “After the IPO, alternatively, ratings of stories got here to mild of Lyft drivers sexually assaulting their passengers. Dozens of people introduced claims in opposition to Lyft associated with driving force sexual misconduct within the months following the IPO.”

The shareholders say Lyft didn’t reveal this in its IPO registration bureaucracy.

Lyft in the long run launched its first-ever protection file in October 2021 wherein it disclosed it gained 4,158 studies of sexual attack on its platform from 2017 to 2019. The disclosure got here greater than 3 years after Lyft and its rival Uber (UBER) dedicated to hanging out protection studies disclosing incidents of sexual attack and abuse on their platforms after a 2018 CNN investigation into the problem.
Each firms proceed to stand a variety of felony claims from folks over their alleged protection incidents on their platforms. A small choice of claims that Lyft is going through are slated to visit trial thru a coordinated continuing later this yr.

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