Lyft pays $2.1 million to settle case alleging the ride-hailing service deceived drivers

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. The agreement disclosed Friday by the U.S. Justice Department formalizes a settlement Lyft reached with the Federal Trade Commission over the same issues on October 25. Both agencies had alleged Lyft advertised deceptive compensation rates during 2021 and 2022 in an effort to recruit more drivers as the pandemic eased and ride-hailing demand perked up.