Lyft’s Messy IPO Gets More Complicated Thanks to Two Investor Class-Action Lawsuits

BY admin April 20, 2019 Technology 7 views

Lyft’s initial public offering headache just got worse.

Lyft co-founders John Zimmer, front second from left, and Logan Green, front second from right, cheer as they as they ring a ceremonial opening bell in Los Angeles.
Photo: Ringo H.W. Chiu (AP)

Lyft’s initial public offering headache just got worse.

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).

A spokesperson for Lyft declined to comment on the lawsuits.

Earlier this week, it was announced that Lyft was pulling its recently acquired fleet of e-bikes from the streets of New York, San Francisco, and Washington amid reports of braking issues, some of which resulted in rider injury.

A spokesperson for Citi Bike, which is operated by Lyft-owned Motivate, told Gizmodo in a statement by email that following “a small number of reports and out of an abundance of caution, we are proactively pausing our electric bikes from service.” The company said it was working to replace electric bicycles in the three markets with regular bikes in the interim to avoid service disruptions.

In short, Lyft’s very bad week just got even more complicated.



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