- General
- May 19, 2019
- 3 minutes read
Investors Sue Lyft Over IPO
image: Lyft Some investors have filed a legal case against Lyft in a San Francisco court over its IPO, after…
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| image: Lyft |
Some investors have filed a legal case against Lyft in a San Francisco court over its IPO, after a 30% fall from its debut price. The investors are claiming false and misleading information inflated Lyft’s stock price which have led to losses after its decline.
The suit claims Lyft mis-informed investors about its labor matters, bicycle safety issues and its position in the ride-hailing market. Some Lyft executives and bank underwriters are named as defendants in the lawsuit.
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| image: Lyft |
Lyft shares are currently trading at about $54 (as of writing), down from a $72 debut price. The company recently reported quarterly losses of $1.14 billion on $776 million revenue although the bulk of losses were due to stock-based compensation.
Just like Lyft, it’s counterpart Uber also had a rocky IPO, sliding down about 13% some moments after its debut.
