Lyft investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Lyft is a ridesharing company. Beginning in 2012, Lyft sought to revolutionize transportation by launching its peer-to-peer marketplace for on-demand ridesharing. In November 2018, Lyft acquired Bikeshare Holdings LLC’s Motivate technology and corporate functions for $251 million. In 2017, Motivate was the largest bikeshare operator in North America with revenue of approximately $100 million. This acquisition enabled Lyft to add bikes to its suite of services.
On March 28, 2019, Lyft offered 32.5 million shares to the public through an IPO at a price of $72.00 per share for total proceeds of $2.34 billion. According to the registration statement on Form S-1 declared effective on March 28, 2019 (the “Registration Statement”) and Prospectus filed in connection with the IPO, Lyft estimated that its ridesharing marketplace “is available to over 95% of the U.S. population, as well as in select cities in Canada.” Lyft represented that its “U.S. ridesharing market share was 39% in December 2018, up from 22% in December 2016.”
According to the complaint, on April 11, 2019, after the close of the market, Lyft’s larger competitor, Uber, filed a Form S-1 with the SEC. Uber’s Form S-1 claimed a market share of greater than 65% in the United States and Canada, a claim that further undermined Lyft’s purported claim of 39% market share. Then, on April 15, 2019, The New York Times reported that Citi Bike was taking out of service 1,000 bicycles in New York, and more in Washington, D.C., and San Francisco in the wake of dozens of reported injuries and safety concerns. Following this news, Lyft’s shares fell from $72.00 to under $57.00 on April 15, 2019.
Finally, on May 6, 2019, Lyft’s stock price fell 3.2% following revelations that Lyft drivers were planning to go on strike on Wednesday, May 8, 2019.
The complaint alleges that the Registration Statement’s representations were materially inaccurate, misleading, and/or incomplete because they failed to disclose, among other things, that: (1) Lyft’s claimed ridesharing position was overstated; (2) more than 1,000 of the bicycles in Lyft’s rideshare program suffered from safety issues that would lead to their recall; (3) Lyft’s drivers were becoming disincentivized from driving for Lyft; and (4) Lyft failed to warn investors that a labor disruption could affect its operations.
If you are a member of the class described above, you may no later than July 16, 2019 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Submitting the form or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of the class member’s choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-844-887-9500 or 1-610-667-7706, or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-844-887-9500 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com