Updated: July 1, 2020
Status: Ongoing Case
On June 6, 2019, Labaton Sucharow LLP filed in California state court a class action complaint for violations of the Securities Act of 1933 against Lyft, Inc. (“Lyft”) in connection with Lyft’s initial public offering (“IPO”). On September 10, 2019 the Court consolidated that case with six other class actions against Lyft. On October 21, 2019, the plaintiffs in the consolidated action filed the action’s operative complaint (the “Complaint”), which asserts claims under Sections 11, 12(a)(2), and 15 of the Securities Act against Lyft and certain other defendants.
The Complaint alleges that the registration statement and prospectus used to conduct Lyft’s IPO misrepresented the truth about the major liability Lyft faced stemming from sexual assaults by its drivers, significant mechanical malfunctions plaguing the Lyft’s new fleet of electronic bikes, its financial condition, and its market share. As a result of these false and misleading statements and omissions, Lyft’s stock price has significantly decreased since the IPO.
On December 30, 2019, the Defendants filed demurrers seeking to have the consolidated complaint dismissed. Following a hearing, on July 1, 2020, the Court entered an order overruling the demurrers in large part.
The case is In re Lyft, Inc. Securities Litigation, No. CGC-19-575293, in the Superior Court of the State of California, County of San Francisco. Labaton Sucharow represents plaintiff Greater Pennsylvania Carpenters’ Pension Fund. The defendants are Lyft, Inc., certain of its officers and directors, and its IPO underwriters.