Lyft may pay settlement over four years with maximum $12.40 million interest
LYFT•Lyft reached an agreement to resolve allegations that it misclassified California drivers from April 5, 2016, through Dec. 15, 2020. The settlement totals $272.5 million; Lyft recorded a $210 million accrual in Q4 2025 and may pay over four years with maximum interest of $12.40 million.
1. Settlement terms
Lyft reached an agreement to resolve allegations that it misclassified drivers in California from April 5, 2016, through Dec. 15, 2020. The settlement payment totals $272.5 million, and Lyft may pay it over four years, with maximum interest of $12.40 million.
2. Financial disclosures
Lyft recorded a $210 million accrual related to the settlement in Q4 2025. The settlement amounts are excluded from adjusted EBITDA and adjusted EBITDA margin, and Lyft confirmed no changes to its Q3 2026 gross bookings, adjusted EBITDA or adjusted EBITDA margin guidance.
