Lyft’s $25 Million Class Deal With Investors Gets First Approval

Lyft Inc. and shareholders who say it failed to disclose “pervasive sexual assault and safety issues” before its 2019 initial public offering cleared an initial hurdle for their proposed $25 million settlement.

The agreement is fair, reasonable, and adequate, Judge Haywood S. Gilliam Jr. of the US District Court for the Northern District of California said Dec. 16 when granting preliminary approval.

One feature of the settlement is that unused money from the fund won’t revert to Lyft. It will go to a student clinic for the protection of limited-income investors at Northwestern University Pritzker School of Law. That designation ...