SAN DIEGO & SAN FRANCISCO–(BUSINESS WIRE)–Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Lyft, Inc. (NASDAQ: LYFT) filed a class action complaint against the company for alleged violations of the Securities and Exchange Act of 1933 pursuant to the company’s March 2019 initial public offering (“IPO”). Lyft is a ridesharing company.
According to the complaint, Lyft held its IPO in March 2019, offering its stock at $72.00 per share for anticipated total proceeds of over $2 billion. In the immediate wake of the IPO, Lyft’s stock price declined as investors raised concerns that Lyft’s reported market share may have been overstated. Investor concerns were exacerbated on April 10, 2019, by reports that Uber, Lyft’s much larger competitor, was preparing to file for an initial public offering. The next day, Uber’s Form S-1 claimed a market share of greater than 65%, which undermined Lyft’s market share claim of 39%. A few days later, the New York Times reported that Lyft’s bikeshare program, Citi Bike, was pulling 1,000 bicycles from multiple cities in the wake of dozens of reported injuries and safety concerns. Lyft’s stock has declined in response to these revelation, and trades at around $58 per share—almost 20% below its IPO price.
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, [email protected], or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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