Investors Challenge Lyft in Class Action Securities Fraud Suit
by: The Knowledge Group
Investors have ride-share firm Lyft in the legal spotlight. An investors’ class-action suit will likely impact the company’s financial and PR strength—even as Lyft’s current market capitalization, about $16 billion, is now well below its IPO value of $20 billion.
The lawsuit claims Lyft misled and defrauded the public through promotional statements surrounding the company’s initial public offering with the SEC. The suit, in U.S. District Court in the Northern District of California, accuses Lyft, and key officers, directors, and underwriters, of numerous securities violations.
Lyft is accused of inflating its market share percentage and failing to warn investors of ride-share bike recalls and worker strikes. Both Uber and Lyft have faced driver strikes this year. The Knowledge Group earlier reported on drivers’ actions ahead of Uber’s IPO.
Meanwhile, this year Uber settled a class action lawsuit with 13,600 California and Massachusetts drivers involving employee misclassification allegations. Companies using gig workers often use arbitration clauses to head off class actions. Internationally, these contractual provisions are under legal attack.
Find out more about class-action suits and the nuts-and-bolts preparation for class litigation in The Knowledge Group’s upcoming live webcast:
Using Expert Evidence for Class-Action Certification
Obtaining class certification is essential for bringing a class action. The typical case brings in expert evidence to meet the criteria for class certification.
In How to Effectively Use Expert Evidence in Class Action Cases, we’ll discuss best practices with a knowledgeable panel of practitioners, and explore ways in which class-action lawyers and plaintiffs can strategize about obtaining and implementing expert evidence. The session will cover notable cases, risks, and advantages of class certification, and pitfalls to avoid.
Our outstanding faculty for this CLE includes Charles River Associates VP Renee McMahon, joined by Nathan Associates Senior VPs Jonathan Schwartz and Chen Song, Ph.D., CFA. Join us Wednesday, June 5 from noon to 1:30 pm (ET) for this lively CLE Expert Evidence Webinar.