Cases & Investigations
Lyft, Inc. Securities Litigation

Wolf Popper represents the lead plaintiff in a federal securities lawsuit against Lyft, Inc. (“Lyft”) and certain of its officers. Yuan Chen v. Lyft, Inc., No. 24-cv-01330 (N.D. Cal.)  The action is brought on behalf of all persons who purchased or otherwise acquired Lyft common stock on a U.S. open market between February 13, 2024 at 4:05 p.m. through February 13, 2024 at 4:51 p.m. (the “Class”).  Wolf Popper filed an Amended Complaint on August 1, 2024.   
 
The Amended Complaint alleges that the defendants made materially false and misleading statements in a press release reporting fourth quarter 2023 operating results released to the market on February 13, 2024 at 4:05 p.m. 
 
After the market closed on February 13, 2024, at 4:05 p.m., Lyft issued a press release reporting its fourth quarter 2023 operating results. The press release misrepresented that Lyft anticipated an “[a]djusted EBITDA margin expansion … of approximately 500 basis points year-over-year.”  In fact, Lyft only anticipated a 50 basis point margin expansion.  The misrepresentation with respect to margins caused Lyft’s common stock, which closed on February 13, 2024 at $12.13, to trade as high as $20.25 in the aftermarket.
 
Lyft began its earnings call on February 13, 2024 at 4:30 p.m. and it wasn’t until more than 17 minutes into the call that Lyft’s Chief Financial Officer referenced a 50 basis point expansion in Lyft’s adjusted EBITDA margin.  That disclosure had an immediate impact on Lyft’s stock price, which fell from $19.52 a share at 4:45 p.m. to $12.92 shortly after 4:50 p.m. It took another seven minutes for the CFO to acknowledge that her reference to 50 basis points was “actually a correction from the press release.”
 
The Amended Complaint alleges that the issuance of the false press release and failure to correct the press release in a timely fashion caused investors who purchased Lyft common stock in the aftermarket on February 13, 2024 to incur damages.  During the 46-minute class period over 31 million Lyft common shares traded at inflated prices.

 

Phone: Philip Black - (212) 451-9628
Phone: Robert Finkel - (212) 451-9620
Phone: Terrence Zhang - (212) 451-9663
Email: Outreach@wolfpopper.com