Lyft Inc. (LYFT  ) reportedly faces multi-billion-dollar liabilities from its legal challenges due to alleged sexual assault claims, according to short-seller Bleecker Street Research, which announced that it was shorting the ride-hailing company. Lyft Faces Thousands of Cases

According to the short-seller's research report released on Thursday, Lyft faces an estimated $1.3 billion to $2.7 billion in potential exposure stemming from consolidated rideshare sexual assault litigation. Bleecker Street alleges that the ride-hailing company failed to accrue for these claims on its balance sheet.

Lyft did not immediately respond to Benzinga's request for comment.

The short-seller also said that the company holds just $533 million in combined legal and tax accruals and $1.7 billion in unrestricted cash and investments.

The report highlights that sexual assault lawsuits against Lyft include a Multi-District Litigation (MDL No. 3171) in federal court and state proceedings in California (JCCP No. 5061), with the report saying that prospective claims could surge past 6,000 cases.

Lyft's first state-level bellwether trial is scheduled for September 30. The report also mentions that Lyft reported 6,809 serious sexual assaults between 2017 and 2022.

Fundamentals Under Pressure

Beyond legal troubles, the short seller criticized Lyft's core operations, labeling it a "structurally second-rate" business. Lyft currently holds roughly a 24% share of the U.S. rideshare market, compared to rival Uber Technologies Inc. (UBER  ) commanding 76% market share, the report said.

Furthermore, Bleecker Street argued that Lyft's autonomous vehicle strategy lacks muscle. While competitors push forward with fleet expansions, the report states Lyft's recent partnerships, including a non-exclusive deal with Alphabet Inc.'s (GOOGL  ) (GOOG  ) Waymo, offer little long-term defense against market share erosion.

According to the short-seller's report, the per-share impact of the legal liabilities could range from $3.19 to $6.38. The report also cites former Lyft employees and insurance industry executives, who were unsure if providers would cover sexual assault claims.

Lyft is expected to report its earnings for second-quarter 2026 on August 6th following market close. CEO David Risher, on the other hand, was hailed by TV host Jim Cramer.

Price Action

LYFT shares surged 1.28% to close at $14.20 on Friday, and are up 0.49% in pre-market trading on Monday. The company's shares have declined 26.69% year-to-date.