Lyft coughs up $300k to settle New York State lawsuit
Peer to peer ridesharing app Lyft has agreed to pay $300k to settle a New York State lawsuit which alleged the on demand transport service broke local laws.
It follows a writ served by the NY attorney general Eric Schneiderman and ex NY superintendant of financial services Benjamin Lawsky who accused Lyft of ‘running an unlicensed insurance business’ owing to the firm’s sale of insurance policies to drivers.
Following the settlement Lyft will now require its drivers to obtain insurance by a state authorised insurer whilst complying with all applicable state and municipal laws – resolving outstanding legal action.
Lyft was already complaint with both rules within New York City.
In a statement Lyft said: “Today’s mutually agreed upon settlement does not require any changes to existing Lyft service in New York. The settlement is part of our continued efforts to return true, peer to peer ride sharing to New York State at large, an effort supported by leaders and consumers across the state.”
Lyft came unstuck after expanding in New York State, which regarded the business as a for-hire livery provider, thus requiring drivers to hold commercial licenses – unlike other states which have no such requirement.