Lyft Inc.
10/01/2026 | Press release | Distributed by Public on 10/01/2026 04:07
Regulation FD Disclosure (Form 8-K)
Item 7.01 Regulation FD Disclosure
On September 30, 2026, Lyft, Inc. (the "Company") reached an agreement (the "Settlement Agreement"), subject to approval by the Superior Court of California, County of San Francisco, with the State of California (represented by the California Attorney General and the City Attorneys of San Francisco, Los Angeles, and San Diego), the Labor Commissioner for the State of California, and two private plaintiffs suing under the Private Attorneys General Act (collectively, the "Plaintiffs"), to resolve allegations that the Company misclassified drivers in California for the period from April 5, 2016 through December 15, 2020 (the "Covered Period") as independent contractors in violation of California law.
Under the terms of the Settlement Agreement, the Plaintiffs agree to release the Company from all claims that are or could have been asserted based on alleged misclassification of drivers or other alleged violations of labor laws by the Company during the Covered Period, for a total of $272.5 million (inclusive of attorneys' fees, costs and expenses). The Company can elect to make settlement payments over four years, with 5% simple interest accruing after the first year, subject to a maximum amount of $12.4 million in interest. The Settlement Agreement does not include prepayment penalties or prospective operational commitments. The Settlement Agreement and any related documents do not constitute evidence or admission of fact or liability by the Company. The Company believes resolving this matter with certainty now will allow it to avoid the costs and distraction of protracted litigation and enable management to maintain its focus on executing its business objectives. The Company also believes settlement reduces meaningful legal uncertainty and risk associated with complex litigation.
In the fourth quarter of 2025, the Company recorded a $210 million accrual related to this matter within accrued and other current liabilities on its condensed consolidated balance sheet and recognized a corresponding charge on its condensed consolidated statement of operations, allocated between a reduction to revenue and general and administrative expenses. Amounts for this matter constitute "certain legal, tax, and regulatory reserve changes and settlements" that are excluded from the Company's Adjusted EBITDA and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings).
As of September 30, 2026, the Company confirmed there have been no changes to its third quarter 2026 Gross Bookings, Adjusted EBITDA, and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) guidance that it provided on August 6, 2026. The Company expects to report its third quarter 2026 financial results in November 2026.
The information furnished under Item 7.01 of this Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing. In addition, the information contained in this Item 7.01 on Form 8-K will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.
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