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LYFT.US
id: 1112

Lyft (LYFT) 2023 Results 500bp Mistake Case

N.D. California
Court
3:24-cv-01330
Case number
13 Feb 2024
Class period Start
13 Feb 2024
Class period End
05 May 2024
Lead Plaintiff motion deadline
  • $LYFT stockholder filed a claim vs. Lyft for the error made in the press release on February 13 that resulted in losses for $LYFT investors.
  • On February 13, 2024, Lyft announced an anticipated EBITDA margin expansion of 500 basis points YoY, when in fact Lyft only anticipated a 50 basis point. That was a mistake, acknowledged 45 minutes later, leading the stock to lose most of the gains caused by the mistake.
  • On it, $LYFT dropped most of the 65% gain caused by the misstatement, seriously damaging shareholders.
After the market closed on February 13, 2024, Lyft announced its financial results for the fourth quarter and full-year ended December 31, 2023. Lyft’s press release reported that Lyft anticipated an adjusted EBITDA margin expansion of approximately 500 basis points year-over-year,” when in fact Lyft only anticipated a 50 basis point expansion. That was a mistake, which the company acknowledged during its earnings conference call about 45 minutes later, causing the stock to give back most of its 65% gain.

On this news, $LYFT fell almost 65% and lost a significant portion of its market capitalization, seriously damaging shareholders.

Considering all the information, investors might have grounds to suspect negligence that caused material misstatement, which led to their losses.

The first $LYFT investor filed a claim against Lyft and seniors in N.D. California court.
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
13 February 2024
Filing date
05 March 2024
Lead Plaintiff Deadline
05 May 2024
Collecting participants…

LYFT Inc

Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It operates multimodal transportation networks that offer access to various transportation ...

    Ticker
    LYFT.US
    ISIN
    US55087P1049
    CIK
    1759509
    Sector
    Technology
    Industry
    Software - Application
    Country
    USA
    Address
    185 Berry Street, San Francisco, CA, United States, 94107