Lyft, Inc. NASDAQ: LYFT

What we’re investigating

Henzel Law is investigating potential claims on behalf of shareholders of Lyft, Inc. (“Lyft” or the “Company”) (NASDAQ: LYFT), relating to the Company’s public statements about its legal reserves and its exposure to passenger-safety litigation. No lawsuit has been filed, no deadline is currently running, and no court has ruled on the merits of any matter described on this page.

The firm is particularly interested in hearing from long-term shareholders who acquired Lyft stock during 2025 and continue to hold their shares today, as well as from investors who purchased Lyft shares during the period under review and sold at a loss.

Background

Lyft operates one of the two largest ridesharing networks in the United States. Beginning with its fourth-quarter 2024 results announced on February 11, 2025, and continuing through 2025, the Company reported a series of record quarterly results and repeatedly reaffirmed the long-term financial targets it had set at its first Investor Day — approximately $25 billion in gross bookings and approximately $1 billion in adjusted EBITDA by 2027.

The investigation is examining whether, over that same period, the Company adequately disclosed the scope of its exposure to passenger-safety claims, and whether the amounts it reserved for legal contingencies reflected that exposure.

On February 5, 2026, the Judicial Panel on Multidistrict Litigation consolidated passenger claims against Lyft into a multidistrict litigation proceeding in the United States District Court for the Northern District of California, captioned In re Lyft Passenger Sexual Assault Litigation, MDL No. 3171.

What happened on February 11, 2026

After the market closed on February 10, 2026, Lyft reported its fourth-quarter and full-year 2025 results. Fourth-quarter revenue of approximately $1.59 billion came in below analyst expectations of approximately $1.76 billion. The Company disclosed that the shortfall included a charge of approximately $168 million attributable to changes in legal, tax and regulatory reserves and to settlements — recorded five days after the multidistrict litigation was established. Fourth-quarter ride growth also slowed to approximately 11% year over year, down from approximately 15% in the preceding quarter, while the Company reaffirmed its 2027 targets.

On February 11, 2026, Lyft’s share price fell approximately 17%, closing at $13.99, on trading volume roughly four times its recent average. Unlike many single-day declines, this one is unusually clean to analyze: the broad market indices were essentially unchanged that day, and the only movement among ridesharing peers appeared to be a reaction to Lyft’s own results.

The July 23, 2026 research report

On July 23, 2026, a research firm published a report asserting that Lyft’s potential exposure arising from passenger sexual-assault claims was substantially greater than the reserves carried on its balance sheet, and that the Company had not disclosed the consolidation of those claims into a multidistrict litigation proceeding in its then-recent filings with the Securities and Exchange Commission. Lyft’s share price declined approximately 7% following publication. The assertions in that report are those of its authors, and Henzel Law is evaluating them independently.

Board oversight of passenger safety

A central focus of this investigation is whether Lyft’s board of directors met its oversight obligations. Under Delaware law, directors must make a good-faith effort to put reporting and monitoring systems in place for the risks that are central to the company’s business — and then actually use them. For a rideshare company, passenger safety is not a peripheral compliance matter; it is close to the core of the enterprise itself. Claims of this kind are demanding to prove, but they are at their strongest precisely where the risk at issue is mission-critical to the business.

Among other things, the investigation is examining:

• whether the board established and monitored reporting systems adequate to track passenger-safety incidents and the litigation arising from them;
• whether the board received and acted upon information regarding reported assault volumes, the growing number of individual lawsuits, and the petition to consolidate those lawsuits into a single federal proceeding; and
• whether those warning signs were addressed, or instead disregarded, in the period leading up to the February 2026 reserve charge.

Claims of this type are brought on behalf of the Company itself rather than on behalf of individual investors. They generally require a shareholder who owned stock at the time of the conduct at issue and who has continued to own it since. That is why Henzel Law is seeking long-term Lyft shareholders.

Who this may affect

You may be able to help, and may have rights worth reviewing, if you are:

• a current shareholder who purchased or otherwise acquired Lyft common stock during 2025 or earlier and still holds those shares today;
• an investor who purchased Lyft common stock during the period under review and suffered a loss; or
• a former employee, contractor or other individual with knowledge of how Lyft evaluated, reserved for or disclosed its legal contingencies during the period under review.

There is no cost or obligation to contact Henzel Law about this investigation. The estimated period stated above is the firm’s own preliminary estimate based on publicly available information; it has not been established by any court and may change as the investigation develops. Nothing on this page is an assertion that any Lyft officer, director or employee has been found to have violated any law.