RIDEGURU
It's funny how all of this comes down to Lyft failing "to alert investors ahead of its recent electric bike recall.".
Ivory tower is very tall where Lyft founders and investors live.
Bloomberg reported Wednesday that following Lyft’s initial public offering, which didn’t exactly go super well, the company is now looking at two separate lawsuits from its investors. At the time the company went public last month, Lyft’s shares were initially priced at $72. But shortly after, its share price began to fall—and kept falling—with the company at $58.36 as of Thursday.
According to Bloomberg, investors allege in their suits—both of which were filed in state court in San Francisco—that Lyft’s claim to 39 percent market share was maybe not quite in line with reality.
The suits also reportedly faulted the company for failing to alert investors ahead of its recent electric bike recall, yet another problem facing the company at present (aside, of course, from ongoing controversy over Lyft’s labor practices).
Lyft's Messy IPO Gets More Complicated Thanks to Two Investor Class-Action Lawsuits
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This one too
Lyft's Fast-Slumping Stock Quickly Leads to Investor Lawsuits
Snap Inc.’s IPO honeymoon in 2017 gave way to investor lawsuits within 10 weeks. With Blue Apron Holdings it was just seven weeks.
For Lyft Inc., whose stock has tumbled sharply since its March 28 launch, it took less than three weeks for disillusioned shareholders to sue the company over claims they were taken for a ride.
Aren't these types of court cases fairly common in the world of Wall street? I feel like this is a media hype. aka Fake News.