Lyft To Pay $300,000 To Resolve Claims It Illegally Operated In Some Areas Of New York

Nearly a year after the New York Attorney General’s office and state insurance regulators filed a lawsuit accusing ride-sharing app Lyft of violating state law in certain areas, the company has agreed to pay $300,000 to resolve the complaint.

New York Attorney General Eric Schnedierman, in conjunction with the New York State Department of Financial Services, announced Wednesday that it reach a deal with Lyft to settle claims the company violated state and municipal laws in the summer of 2014.

The agreement, in which Lyft does not admit wrongdoing, puts an end to a July 2014 lawsuit that claimed the ride-hailing service’s entry into Buffalo and Rochester was done illegally.

According to the original complaint, Lyft allegedly broke the law when it failed to require its drivers to hold commercial licenses, carry adequate insurance, or comply with local for-hire licensing rules.

State officials accused the company of operating in “open defiance of state and local licensing and insurance laws designed to protect the lives and well-being of New Yorkers.”

As part of the lawsuit, the state sought to prevent the company from launching service in Brooklyn and Queens. The parties came to an agreement on that issue just two weeks later, allowing Lyft to begin services in those areas.

In addition to paying the $300,000 fine, Lyft agreed to give at least three weeks notice to cities before launching in the state and abide by all state and municipal laws for vehicles-for-hire. The company must also require drivers to have auto insurance issued by state-authorized insurers.

The insurance must cover drivers while they have the Lyft app turned on to receive requests to pick up passengers through the end of any rides they provide. Additionally, the consent order prohibits Lyft from offering, selling or providing insurance policies that do not comply with the New York Insurance Law.

A.G. Schneiderman Announces Joint Settlement With LYFT [New York Attorney General Eric Schneiderman]

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