Judge Okays Misclassification False Claims Case Against Lyft

A federal judge gave the green light to a former driver’s complaint against rideshare giant Lyft under Nevada’s false claims law, advancing allegations the company knowingly misclassified its drivers as independent contractors to avoid paying unemployment compensation.

On Monday, District Judge Anne R. Traum denied Lyft’s request to dismiss the case, finding that the factual issues in the case needed to be resolved and that the driver’s claim was proper under the Nevada False Claims Act.

Whether or not Lyft Inc drivers are employees under the state’s unemployment compensation law, “giving rise to Lyft’s obligation to pay unemployment taxes, ...