Lyft Settlements & Confidentiality Clauses

Lyft Is Requiring that I Keep My Settlement Confidential. Can They Do That?

Question:
Lyft agreed to settle my car accident claim. The adjuster sent me a release that says I have to keep the settlement confidential. Do I have to agree to that?

Answer:
Rideshare companies like Lyft and Uber always include a confidentiality clause in their settlement agreements. That means: Lyft and Uber won’t pay you on your car accident claim unless you sign a release agreeing not to disclose the terms or conditions of the settlement agreement.

To add insult to injury, the rideshare settlement agreements also include a liquidated damages clause, which states that you must pay the rideshare company a specified amount (it could be $10,000 or more) if you breach the confidentially clause. You also agree to pay Uber or Lyft’s attorney’s fees if they sue you for violating the confidentiality clause.

If that’s not obnoxious enough, the rideshare settlement agreements also include a non-disparagement clause requiring that you agree to not defame, disparage or impugn the company.

Legally, the rideshare companies are allowed to include these clauses in their settlement release agreements. You are not obligated to sign the agreement, but if you don’t, the rideshare company’s insurance carrier likely won’t pay you.

Dealing with a rideshare company after a car accident can be complicated. It’s important that you know your rights and that you don’t get taken advantage of by Uber or Lyft’s insurance carriers.

If you are injured in an accident involving an Uber or a Lyft, you should get advice from an experienced car accident lawyer. At McGee, Lerer & Associates, our attorneys are available 24/7 to take your call and consultations are free. Tell us about your accident, and we’ll be straight with you regarding the strength of your case, and whether you really need a lawyer. If our conclusion is that you don’t, then we’ll still provide free advice.