Hedge fund Engine Capital Management is preparing for a potential battle at Lyft by nominating directors to the ride-hailing company, according to sources familiar with the situation. The activist investor has been pressing Lyft to address its declining stock price and strategic issues. A source of contention for investors is the company's dual class share structure. Engine Capital Management owned less than 1% of Lyft by the end of December, which is below the requirement for nominating directors, set at 1% ownership. Lyft currently has 10 board members, and its market value is around $5 billion, with a stock price drop of 37.4% in the past year. Both Lyft and Engine Capital declined to provide immediate comments.