Investors Call Lyft's Bid To Exit IPO Suit A 'Red Herring'

By Jasmin Jackson (June 12, 2020, 5:42 PM EDT) -- Peeved stockholders argued Thursday that ride-hailing app Lyft can't escape their claims that it wiped out nearly $600 million in investments with misleading statements leading up to its March 2019 initial public offering, calling the company's bid to shake the suit a "red herring."

According to Thursday's filing, Lyft is "attempting to deflect attention" from deficient disclosures when it argued last month that it was not obligated to use the precise terms investors desired to disclose extensive sexual misconduct allegations, quarterly losses, severe labor unrest and its struggling bike-sharing business.

"Defendants cannot hide behind generic disclosures, as they had an obligation...

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