DOJ sues Lyft for $53M, alleging it denied rides to disabled passengers and charged them fees

The Justice Department sued Lyft on Monday, accusing the rideshare giant of systematically denying rides to passengers with disabilities — people traveling with service animals or using wheelchairs — and then charging those same riders cancellation fees for trips its own drivers refused to complete. The lawsuit, filed in the U.S. District Court for the Northern District of California, seeks $53 million in damages and a court order forcing the company to overhaul its practices.

Federal prosecutors contend that Lyft ran afoul of Title III of the Americans with Disabilities Act of 1990, a law that prohibits private transportation companies from treating passengers differently because of a disability. The suit portrays the issue as widespread, noting that Lyft fields 'thousands of complaints each year alleging disability-based discrimination' yet has declined to change the policies, practices, or procedures that allow such discrimination to continue.

Lyft is aware of, but fails to prevent and remedy, disability-based discrimination throughout its transportation services. Lyft does not adequately train its drivers and customer service representatives about their ADA obligations; monitor its drivers to prevent discrimination; or provide meaningful relief to people it has discriminated against.— DOJ civil complaint

The suit names several passengers whose experiences illustrate the pattern prosecutors describe. Legally blind Tennessee resident James Rath says drivers have turned him away repeatedly since he acquired a guide dog in November 2025. In June, he says a driver refused to accept his dog at an airport pickup and drove away without canceling the ride — leaving Rath stranded and without a formal complaint record. When he raised the issue through Lyft's chat feature, the company did not follow up until he posted about the incident on social media; Lyft then offered him a $10 credit, according to the lawsuit.

California resident Virginia Prince, who is blind and uses a guide dog, alleges that Lyft drivers have turned her away on multiple occasions because of her service animal. Nevada resident Jodie Simon, whose mobility disabilities resulted from a near-fatal car accident, says drivers refused her rides on several consecutive occasions in May 2024 because she uses a wheelchair. Several passengers named in the complaint reported arriving late to destinations after prolonged arguments with drivers who refused to allow service animals in their vehicles.

In addition to outright denials of service, the DOJ contends that Lyft refuses to let passengers with mobility disabilities sit in the front seat when their medical needs require it — an accommodation that the ADA obligates companies to make available.

Individuals with disabilities should be able to rely on rideshare services free of discrimination. We intend to uphold the ADA's promise that people with disabilities are entitled to equal access in every part of public life, including essential transportation services.— Jesus A. Osete, Acting Assistant Attorney General, Civil Rights Division

We take these allegations of misconduct seriously and, like our case against Uber for similar discriminatory conduct, we will devote all the resources necessary to make things right. The stakes are high and we owe those with disabilities nothing less.— Craig H. Missakian, U.S. Attorney for the Northern District of California

Lyft pushed back firmly. The company said it has long-standing policies requiring drivers to accommodate riders with service animals or foldable mobility devices, and that drivers who violate those policies face consequences including permanent deactivation.

Discrimination has no place in the Lyft community. We have long-standing policies requiring drivers to accommodate riders who travel with service animals or use foldable mobility devices, and drivers who violate these policies face serious consequences, including permanent deactivation. We've backed those policies with in-app tools, like letting riders tell drivers in advance that they're traveling with a service animal and reminding drivers that refusing one is against the law. We've cooperated with the DOJ throughout its review and remain committed to serving every rider, including riders with disabilities.— Lyft spokesperson

The government is seeking not only the $53 million in compensation for individuals who filed complaints with Lyft or the DOJ, but also a separate civil penalty to reflect the public interest in ending disability discrimination — and injunctive relief that would compel Lyft to stop the alleged conduct, rewrite its policies to comply with the ADA, and train both drivers and customer service staff on their legal obligations. The case is in its early stages.

The DOJ noted a parallel case against Uber for similar alleged discriminatory conduct.

Why it matters — The case could force the country's second-largest rideshare company to fundamentally change how it handles disability accommodations, setting a precedent for the broader gig-economy transportation industry.

Sources differ on Whether Lyft's existing policies and enforcement are adequate to prevent disability discrimination: Lyft does not adequately train drivers or monitor for discrimination, and fails to provide meaningful relief to those discriminated against. (justice.gov) vs Lyft has long-standing accommodation policies, in-app tools to notify drivers of service animals, and permanently deactivates drivers who violate those policies. (abcnews.com)

Reported by thehill.com, justice.gov, reuters.com, abcnews.com