Lyft stock sunk as much as 9% on Thursday.
The drop comes after the company said it will suspend service in California starting at midnight.
Business Insider reports that California court ordered Lyft and rival firm Uber to reclassify drivers as employees.
Both rideshare companies threatened to suspend operations in the state should the injunction take effect.
Uber has yet to announce a suspension but is expected to do so.
The tumble placed Lyft shares at their lowest levels since early May.
