We have Lyft Off For Most Anticipated IPO of 2019

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Lyft Investors Sue Price Fall Claiming IPO Was Overhyped

Two separate class-action complaints against Lyft, as well as its officers and directors and underwriters, were filed Wednesday in state court in the company’s hometown, San Francisco.

Since going public March 28, Lyft has declined 17 percent to $59.51, the offering price of $72 and it did trade to $88.60 so all of those investors were in the money at some point.

Lyft dumped sharply and larger rival Uber Technologies Inc.’s filing for an initial public offering last week, as investors will soon have another option to bet on the potential of ride-sharing and gig-economy.

The investors claim Lyft was exaggerating in its prospectus when it said its U.S. market share was 39 percent. In both suits, the plaintiffs also dinged the company for failing to tell investors that it was about to recall more than a 1,000 of the bikes in its ride-share program.

The company didn’t immediately respond to an emailed request for comment on the lawsuits.