Car-sharing company Lyft is being sued by New York authorities for failing to comply with regulations. CCTV’s Shraysi Tandon reports.

The car-sharing company, known for its signature pink fuzzy mustaches, has been forced to delay its launch in New York after it being blocked and sued by state regulators.

The New York attorney general’s office accused Lyft of violating eight state and local laws, including illegally employing drivers and using vehicles that are not registered with New York’s taxi commission. In addition, Lyft was also accused of failing to conduct vehicle safety inspections and drug tests on drivers.

Lyft currently operates in 60 cities across the U.S., and experts say Lyft’s business model could benefit New York despite the regulatory obstacles.