An investor in shares of Lyft, Inc. (NASDAQ: LYFT) filed a lawsuit over alleged violations of Securities Laws by Lyft, Inc. in connection with certain allegedly false and misleading statements made in connection with the company’s March 28, 2019, initial public offering (“IPO”).
San Francisco, CA based Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. Lyft, Inc. reported that its annual Total Revenue rose from over $1.05 billion in 2017 to over $2.15 billion in 2018 and that its Net Loss increased from $688.3 million in 2017 to $911.33 million in 2018.
Lyft, Inc. went public in late March 2019 and shares sold at $72.00 per share, valuing the company at $20.5 billion. Since then shares of Lyft, Inc. (NASDAQ: LYFT) declined to $55.56 per share during April 15, 2019.
According to the complaint the plaintiff alleges on behalf of purchasers who purchased common stock of Lyft, Inc. (NASDAQ: LYFT pursuant or traceable to the Company's Offering and Registration Statement issued in relation to the March 28, 2019 IPO, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that the Registration Statement's representations were materially inaccurate, misleading, and/or incomplete because they failed to disclose that more than 1,000 of the bicycles in Lyft's rideshare program suffered from safety issues that would lead to their recall; and that Lyft's claimed ridesharing market position was overstated.