Lyft shares fell as much as 7% on Thursday.
Bleecker Street Research released a short report alleging the company faces billions in undisclosed legal liabilities. The report claims Lyft failed to adequately provision for thousands of sexual assault lawsuits.
Bleecker Street estimates Lyft’s exposure could range between $1.3 billion and $2.7 billion. This figure exceeds the $533 million the company has set aside for combined legal and tax costs.
The report highlights that Lyft has not specifically accrued funds for this litigation. It also notes that Lyft did not disclose the cases were consolidated into a Multi-District Litigation.