03:45 PM EDT, 07/24/2024 (MT Newswires) -- (Updates with additional details throughout.)

Lyft ( LYFT ) has agreed to implement new safety and governance measures to resolve a shareholder lawsuit alleging insufficient action by the company's officers and directors to address incidents of sexual and physical assault by drivers, Reuters reported Wednesday, citing a court filing.

The preliminary settlement, filed late Tuesday in a federal court in Oakland, California, requires judicial approval.

As part of the settlement, Lyft ( LYFT ) agreed to enhance awareness of its "Alert 911 Silently" feature on the app, make 24/7 live reporting simpler, and enhance training and ethical guidelines, Reuters said. The reforms will reportedly last at least three years. Officers and directors won't pay money to the company, while their insurers will cover $700,000 in plaintiffs' legal fees.

Shareholders filed the lawsuit claiming Lyft's ( LYFT ) reputation suffered due to inadequate driver training and background checks. Lyft ( LYFT ) officials denied any wrongdoing in the settlement.

Lyft ( LYFT ) did not immediately respond to MT Newswires' request for comment.

Company shares were down 1% in recent trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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