New York Attorney General Eric Schneiderman said his office had reached a $300,000 settlement with the driving service Lyft over allegations the company violated New York state and municipal laws. | New York Attorney General

ALBANY, N.Y. (Legal Newsline) - A popular driving service will pay the State of New York $300,000 for allegedly violating state and municipal laws, New York Attorney General Eric Schneiderman said this week.

Schneiderman said Lyft, which provides a driving service through a smartphone app, reached the terms of the settlement last week, and has agreed to comply with all relevant laws.

“I have always been committed to fostering an innovative and competitive environment in which both new and existing companies can flourish in our great state,” Schneiderman said.

“However, it’s critical that the laws put in place to protect consumers and ensure fair competition are not violated in the process. Today’s agreement enables Lyft to grow and prosper within the bounds of state and local regulations, while the penalties imposed send the message that companies that attempt to skirt the law will be held accountable.”

The agreement requires all Lyft drivers to have auto insurance through a New York-authorized insurer, and must cover the drivers while they have the Lyft app open and are picking up passengers. Lyft must give the New York Superintendent, Attorney General's Office and other municipality or jurisdiction a three week notice prior to launching the service in the given region of the state.

The lawsuit was filed by Schneiderman's office in July 2014 after the company launched its service in Buffalo and Rochester without informing the cities of their operation and prior to getting the necessary approvals.

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