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Lyft's fast-slumping stock quickly leads to lawsuits from investors

The standard claim is that the company's officers and underwriters overhyped its prospects, leading to investor losses

Lyft Inc, Lyft

Snap Inc.’s IPO honeymoon in 2017 gave way to investor lawsuits within 10 weeks. With Blue Apron Holdings it was just seven weeks. For Lyft Inc., whose stock has tumbled sharply since its March 28 launch, it took less than three weeks for disillusioned shareholders to sue the company over claims they were taken for a ride. Such lawsuits are a rite of passage for newly public companies, and have become even more common after the 2008 financial crisis, according to Cornerstone Research. Most are dismissed or settle out of court; trials are exceedingly rare. The ...