Lawsuit claims Lyft misled investors in its IPO prospectus

Tuesday 21 May 2019 00:34 CET | News

A class-action lawsuit has claimed Lyft misled investors in its filing to go public, and its shares dipped as much as 3.6%, while the stock ended trading up 1.6%.

The company’s stock has fallen from its late March IPO price of USD 72 per share to USD 54.63. Lyft’s market cap sits just below USD 16 billion, down from the USD 20 billion at which it was valued based on its IPO price.

US-based company Block & Leviton filed a class-action lawsuit in the US District Court in the Northern District of California alleging securities fraud. The complaint alleges that Lyft made inaccurate and misleading claims about its business in the filing to go public. This caused its stock price to be artificially inflated. As per the court filing, Lyft misled investors by failing to disclose in its IPO documents the labor and safety issues it was aware of, and by misrepresenting its market share in its S-1 filing, citing Uber’s IPO prospectus.

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Keywords: Lyft, lawsuit, investors, IPO prospectus, fraud, misleading, stock, shares, US, mischief, market share, safety
Countries: World