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Lyft, Inc. (NASDAQ: LYFT) Investor Notice: Lawsuit alleges Securities Laws Violations

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An investor, who purchased shares of Lyft, Inc. (NASDAQ: LYFT), filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Lyft, Inc. (NASDAQ: LYFT in connection with certain allegedly false and misleading statements made between February 13, 2024 at 4:05 p.m. through February 13, 2024 at 4:51 p.m..

If you purchased a significant amount of shares of Lyft, Inc. (NASDAQ: LYFT) between February 13, 2024 at 4:05 p.m. through February 13, 2024 at 4:51 p.m., and / or if you purchased any NASDAQ: LYFT shares prior to February 13, 2024 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: May 6, 2024. NASDAQ: LYFT investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

San Francisco, CA based Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. Lyft, Inc. reported that its annual Total Revenue rose from over $1.05 billion in 2017 to over $2.15 billion in 2018 and that its Net Loss increased from $688.3 million in 2017 to $911.33 million in 2018.

Lyft, Inc. went public in late March 2019 and shares sold at $72.00 per share, valuing the company at $20.5 billion.

On February 13, 2024, at 4:05 p.m., Lyft, Inc. issued a press release reporting its fourth quarter 2023 operating results. The press release was also filed with the Securities and Exchange Commission as an exhibit to a Form 8-K. The press release stated that Lyft, Inc. anticipated an “[a]djusted EBITDA margin expansion … of approximately 500 basis points year-over-year.” However, in reality Lyft, Inc. only anticipated a 50 basis point margin expansion.Thus, rather than anticipating 2024 margins of 6.6%, in fact Lyft was only anticipating 2024 margins of 2.1%.

The plaintiff claims that the misrepresentation with respect to margins was material and caused Lyft common stock, which closed on February 13, 2024 at $12.13, to trade as high as $20.25 in the aftermarket (between 4:40 p.m. and 4:41 p.m.).

Then on February 13, 2024 at 4:30 p.m. Lyft, Inc. began its earnings call and after more than 17 minutes into the call Lyft’s Chief Financial Officer referenced a 50 basis point expansion in Lyft’s adjusted EBITDA margin.

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.
The plaintiff alleges that tt took another seven minutes for the CFO to acknowledge that her reference to 50 basis points was “actually a correction from the press release.”

According to the complaint the plaintiff alleges on behalf of purchasers of Lyft, Inc. (NASDAQ: LYFT) common shares , that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that the Defendants knew that many if not most of the shares that traded in the aftermarket were shorts that were covering their positions and therefore were motivated not to move promptly to correct the press release and that the presence of the large short position had a negative impact on the Individual Defendants’ ability to earn stock-based performance bonuses.

Those who purchased shares of Lyft, Inc. (NASDAQ: LYFT) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About:
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

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