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

Law360 (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...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!