Lyft reached a settlement agreement with California state and local authorities to resolve driver misclassification allegations for the period April 5, 2016 through December 15, 2020. The total settlement amount is $272.5 million, inclusive of attorneys’ fees, costs, and expenses. Lyft previously recorded a $210 million accrual in the fourth quarter of 2025 for this matter. Payments can be made over four years with up to $12.4 million in interest accruing after the first year. The settlement does not include prepayment penalties or prospective operational commitments and is subject to court approval. Lyft operates in the ride-hailing and transportation network industry.
