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The preliminary settlement was filed on Thursday with the federal court in Oakland, California, and requires approval by U.S. District Judge Haywood Gilliam Jr.
Lyft (NASDAQ:LYFT) denied wrongdoing in agreeing to settle.
The San Francisco-based company became the first ride-hailing business to go public when it raised $2.34 billion in its March 2019 IPO.
Investors who bought shares in the IPO sued less than two months later, accusing Lyft of concealing safety problems from its registration statement in a bid to appear more socially responsible than its main rival, Uber Technologies (NYSE:UBER) Inc.
Lyft’s share price fell below the $72 IPO price less than two weeks after trading began on March 29, 2019, and never recovered.
