Uber, Lyft Win Injunction Blocking NYC Driver Deactivation Law
LYFT sits 20% above its 52-week low of $12.46 on light trading volume (0.3× avg).
Summary
A federal judge granted Uber and Lyft a preliminary injunction against New York City's 'just cause' driver deactivation law, blocking enforcement before its July 28 effective date. The ruling found the law likely unconstitutional, as it would severely impair the companies' contracts with drivers without advancing a broader public interest. This follows the companies' lawsuits filed in June, and removes a near-term regulatory threat that could have increased costs and operational complexity in a key market. The city may appeal, but for now the status quo remains. Watch for further court proceedings or potential legislative responses.
At the time of this announcement, LYFT was trading at $14.90 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $5.7B. The 52-week trading range was $12.46 to $25.54. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.