Lyft Inc (LYFT.O) has reached a $25 million settlement to resolve shareholder claims that the ride-hailing company concealed safety problems, including sexual assaults by drivers, prior to its 2019 initial public offering.
The preliminary all-cash settlement was filed on Thursday with the federal court in Oakland, California, and requires approval by U.S. District Judge Haywood Gilliam Jr.
Lyft denied wrongdoing in agreeing to settle.
The San Francisco-based company raised $2.34 billion in its IPO, becoming the first ride-hailing business to go public.
But its share price fell below the $72 IPO price less than two weeks after trading began on March 29, 2019, and never recovered.
Shareholders accused Lyft of trying to appear more socially responsible than rival Uber Technologies Inc (UBER.N) by failing to disclose known problems in its IPO registration statement, and that its share price fell as the problems surfaced.