Lyft is paying $2.1 million to settle a lawsuit accusing the ride-hailing service of exaggerating how much money drivers could make while the company was trying to recover from a steep downturn in demand during the pandemic.
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Both the Justice Department and Federal Trade Commission have been investigating Lyft since uncovering evidence that it was advertising inflated compensation rates while trying to to recruit more drivers as the pandemic began to ease and ride-hailing demand perked up. But those figures were based on the earnings among the top 20% of Lyft's drivers, leaving them unattainable for most others who picked up passengers for the ride-hailing service, the lawsuit alleged. much as $44 per hour in San Francisco.
Lyft has already changed many of the practices cited in the lawsuit and is now overseen by a CEO, David Risher, who came on board last year.
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