Lyft, Inc. (NASDAQ: LYFT) Investor Notice: Lawsuit alleges Securities Laws Violations


A lawsuit was filed in the U.S. District Court for the Northern District of California by an investor who bought shares of Lyft, Inc. (NASDAQ: LYFT) alleging that the company violated federal securities laws in relation to some allegedly false and misleading statements made between February 13, 2024, at 4:05 p.m., and February 13, 2024, at 4:51 p.m.

You have specific options, and for some investors, there are tight deadlines, if you bought a sizable quantity of Lyft, Inc. (NASDAQ: LYFT) shares between February 13, 2024, at 4:05 p.m. and February 13, 2024, at 4:51 p.m., and/or if you bought any NASDAQ: LYFT shares before February 13, 2024 and you still own any of those shares. Priority date: May 6, 2024. NASDAQ: Investors in LYFT should get in touch with the Shareholders Foundation by phone at +1(858) 779-1554 or via email at [email protected].

Lyft, Inc., a San Francisco, California-based company, runs a peer-to-peer on-demand ridesharing marketplace in both the US and Canada. According to Lyft, Inc., its yearly Net Loss increased from $688.3 million in 2017 to $911.33 million in 2018, and its Total Revenue increased from over $1.05 billion in 2017 to over $2.15 billion in 2018.

After going public in late March 2019, Lyft, Inc. was valued at $20.5 billion after shares were sold for $72.00 each.

Lyft, Inc. released a press release with its operating results for the fourth quarter of 2023 on February 13, 2024 at 4:05 p.m. Additionally, the press release was submitted as an exhibit to a Form 8-K and filed with the Securities and Exchange Commission. According to the press release, Lyft, Inc. projected a year-over-year increase in [a]djusted EBITDA margin of about 500 basis points. In actuality, though, Lyft, Inc. only projected a 50 basis point increase in margin.Therefore, Lyft was actually only projecting 2024 margins of 2.1%, not 6.6% as previously thought.

The plaintiff asserts that Lyft’s common stock, which ended at $12.13 on February 13, 2024, traded as high as $20.25 in the aftermarket (between 4:40 and 4:41 p.m.). This is because of a significant misrepresentation, according to the plaintiff.

Later, on February 13, 2024, at 4:30 p.m., Lyft, Inc. had its earnings call. The company’s chief financial officer mentioned a 50 basis point increase in Lyft’s adjusted EBITDA margin more than 17 minutes into the conference.

The price of Lyft’s stock dropped from $19.52 per share at 4:45 p.m. to $12.92 just after 4:50 p.m.According to the complaint, it took the CFO an additional seven minutes to admit that her allusion to 50 basis points was, in fact, a correction from the press release.

In the complaint, the plaintiff claims that the defendants broke federal securities laws on behalf of buyers of common shares of Lyft, Inc. (NASDAQ: LYFT). The plaintiff specifically alleges that the defendants were motivated to delay correcting the press release because they knew that a significant portion, if not all, of the shares that traded in the aftermarket were shorts covering their positions and that the existence of the large short position had a negative effect on the defendants’ ability to receive stock-based performance bonuses.

Those who bought shares of Lyft, Inc. (NASDAQ: LYFT) want to get in touch with the Shareholders Foundation as they have some choices.

Get in touch with Investors Foundation, Inc.Michael Daniels: +1-(858)-779-1554; 3111 Camino Del Rio North, Suite 42392108, San Diego(858)[email protected] is the fax number.

About The Shareholders Foundation, Inc.: We are a professional portfolio monitoring and settlement claim filing service that keeps investors informed about securities class actions, settlements, judgments, and other legal news pertaining to the stock and financial markets. We also conduct research on shareholder issues. With a vast network of contacts, Shareholders Foundation, Inc. provides support, guidance, and aid to each and every shareholder. It is not a law firm, The Shareholders Foundation, Inc. The Shareholders Foundation is not involved in the filed, reached, or settled cases, investigations, or settlements mentioned. The public is offered this information as a service. It should not be relied upon and is not meant to be legal advice.

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